8-KRegulation FDExhibits & Filings

INTEL CORP 8-K Report, Regulation FD Disclosure (Sep 8, 2016)

Filed September 8, 2016For Securities:INTC

Summary

Intel Corporation (INTC) announced in this 8-K filing dated September 7, 2016, that it has entered into a definitive agreement with TPG to establish a new, jointly-owned, independent cybersecurity company. This new entity will operate under the name McAfee. The transaction values Intel Security at approximately $4.2 billion, with TPG holding a 51% stake and Intel retaining 49%. This move signals a strategic shift for Intel, divesting its cybersecurity division to focus on its core semiconductor businesses. Investors should note that this transaction represents a significant valuation for the Intel Security business, which is being carved out into a standalone entity. The deal is subject to customary closing conditions and potential risks outlined in the filing, including the ability to successfully separate the business and maintain its operational integrity. The forward-looking statements highlight the uncertainties associated with the transaction's completion and future performance of the new McAfee entity.

Key Highlights

  • 1Intel Corporation is forming a new, independent cybersecurity company named McAfee in partnership with TPG.
  • 2TPG will be the majority owner with 51% of the new McAfee, while Intel will retain 49%.
  • 3The transaction values Intel Security at approximately $4.2 billion, considering equity value and net debt.
  • 4This transaction represents a divestiture of Intel's cybersecurity business.
  • 5The deal is subject to customary closing conditions and potential risks related to business separation and future operations.
  • 6The new McAfee will be a jointly-owned, independent entity.

Frequently Asked Questions

The main purpose of this 8-K filing is to announce Intel Corporation's definitive agreement with TPG to establish a new, jointly-owned, independent cybersecurity company called McAfee.

TPG will own 51% of the new McAfee company, while Intel will retain a 49% ownership stake.

The transaction values Intel Security at approximately $4.2 billion, which includes an equity value of approximately $2.2 billion plus approximately $2 billion in McAfee net debt.

Key risks include the possibility that the transaction may not close or may be delayed, challenges in successfully separating the Intel Security business, factors affecting McAfee's ability to operate as a standalone entity, and the realization of projected benefits. General economic conditions and intense industry competition are also noted risks.