Customer Transition Portal

Prepare your business for the transition to the new, independent McAfee

Overview | Transaction Details | What You Need to Know | What You Need to Do | FAQ | Resources

What Is Happening

On September 7, 2016 Intel Corporation and TPG announced a definitive agreement under which the two parties will establish a newly formed, jointly owned, independent cybersecurity company. The new company will be called McAfee following transaction close, planned for April 2017. TPG will own 51% of McAfee and Intel will own 49% in a transaction valuing the business at approximately $4.2 billion.

TPG and Intel will work together to position McAfee as a strong independent company with access to significant financial, operational, and technology resources. With the new investment from TPG and continued strategic backing of Intel, the new entity is expected to capitalize on significant global growth opportunities through greater focus and targeted investment. The new company will be one of the world’s largest pure-play cybersecurity companies.

Upon closing of the transaction, Chris Young will become CEO of the new company. On September 7, 2016 he published an open letter to Intel Security’s stakeholders outlining benefits of the transaction and new company.

About Intel Security

Intel Security’s comprehensive software platform protects more than a quarter of a billion endpoints, secures the footprint for nearly two-thirds of the world’s 2,000 largest companies, detects more than 400,000 new threats each day, and represents more than 7,500 strong of the industry’s most talented professionals. The business has demonstrated strong momentum. Through the first half of 2016, Intel Security Group revenue grew 11% to $1.1 billion, while operating income grew 391% to $182 million. Intel Security also increased total bookings 7% per year on a constant currency basis from 2013 to 2015.

About TPG

TPG is a leading global alternative asset firm founded in 1992 with over $70 billion of assets under management and offices around the world. TPG’s investment platforms are across a wide range of asset classes, including private equity, growth venture, real estate, credit, and public equity. TPG aims to build dynamic products and options for its investors while also instituting discipline and operational excellence across the investment strategy and performance of its portfolio. For more information, visit http://www.tpg.com/.

Open Letter from Chris Young to Stakeholders
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Transaction Details

Under the terms of the agreement, TPG will own 51% of a newly formed cybersecurity company valued at approximately $4.2 billion. This is based on an equity value of approximately $2.2 billion plus McAfee net debt of approximately $2 billion. The debt initially will be financed by Intel until completion of audited financial statements for McAfee (expected within three to five months of close). The transaction is expected to close in the second quarter of 2017, subject to certain regulatory approvals and customary closing conditions.

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What You Need to Know

We will begin conducting business as McAfee for all Commercial and Retail transactions, effective April 3, 2017. We will begin conducting business through McAfee Public Sector LLC for all Federal, Government, Healthcare, and Educational transactions, effective April 3, 2017.

Transactions with Intel Security prior to the cutover date Transactions with McAfee after the cutover date
Open purchase orders at cutover will be invoiced from McAfee. New purchase orders should be submitted to McAfee.
Unexpired Intel quotes at the cutover date will be honored after the cutover date up until the quote expiration date. New quotes will be issued by McAfee.
Unpaid invoices at the cutover date should be remitted to Intel as stated in the original invoice. New invoices will be issued by McAfee and payments should be remitted to McAfee.
Open Professional Services orders that have not been completely fulfilled by the cutover date will be invoiced from McAfee. New Professional Services Statements of Work will be issued by McAfee.
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What You Need to Do

  1. Review the FAQ below and if you have more questions, or want to discuss the benefits specific to you, contact your sales rep.
  2. Make sure all valid contracts and SOWs are aligned with the new McAfee entity. Contact us to learn more.
  3. Set up McAfee as a new vendor within your procurement systems. Contact us to learn more.
  4. Follow the bank remit guidance as outlined below for your respective region. Each region has multiple bank accounts aligned to company code and currency. For details, please email us.
  Americas EMEA APAC Japan (Yen) Japan (USD)
Bank Account & Addresses No update required No update required No update required Update No update required
Name & PO Addresses Update Update Update Update Update
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FAQ

Strategy and Business

What is TPG?

TPG is a seasoned technology investor that was attracted to our current momentum and long-term potential. Together, TPG and Intel are committed to building the best cybersecurity company in the industry.

Why did Intel sell a 51% stake to TPG?

This creates the ideal company structure to position McAfee for enhanced focus, innovation, and growth. In the end, McAfee will emerge in a position of greater strength, still fully committed to being the best provider in the cybersecurity industry worldwide.

What is TPG's plan for McAfee?

TPG will help build and create one of the largest independent, pure-play cybersecurity companies in the industry.

What role will Intel have with the new McAfee?

Intel will continue to provide world-class support and access to significant financial, operational, and technology resources, enabling us to realize our full potential as a standalone business.

Are former Intel Security Group executives joining the new McAfee?

Yes.

Who will lead the new McAfee?

Chris Young will continue to lead the organization as CEO of the newly formed company and, along with his leadership team, couldn’t be more energized about our future and how this transaction moves us forward.

Will Intel have representation on the new McAfee board?

Yes.

What does the new McAfee look like in six months or a year from now?

We will continue to be very focused on our customers. The strategy outlined at our annual security conference, FOCUS 16, will be the same. We are focused on end-to-end solutions and pivoting to the cloud.

Will there be acquisitions going forward?

More than likely as we are in growth mode and the security industry continues to go through consolidation.

Will the new McAfee headquarters remain in Santa Clara?

Yes.

What will happen to the Intel Security Group brand?

We are delighted to reveal a new brand that reflects a new McAfee shield and a new tagline, Together is Power. The new McAfee shield is comprised of two interlocking elements that create a unified whole—representing the power that results when we unite with customers, partners, and others in the industry to combat an enemy common to us all.

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Customer Transition

What happens to a Customer’s Open Orders?

After April 3, 2017, all orders will be invoiced on McAfee paper.

What happens to existing quotes?

All quotes generated on Intel Security Group paper will be honored by McAfee.

What happens to my existing contracts with Intel Security Group?

Intel Security Group contracts will be assigned to McAfee with notification. Some contracts will require signatures which will be sent via DocuSign.

What if I have an SOW written to Intel that will not be signed until after cutover?

Since McAfee will become a standalone company, we need to have any new SOWs use the McAfee template. After the transaction close, order ops will reject the order and ask for a new SOW with McAfee to be signed.

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Product Roadmap

Are there plans to radically change McAfee products?

No. We introduced our technology roadmap and strategic direction in 2015 and continue to deliver accordingly.

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Support

Will existing Intel Security Group customer support agreements continue to be honored?

Yes. Nothing will change at this time.

Who should existing customers contact for support issues?

Continue to work with the same support contacts that service you today.

How will customers know if there is a change to their sales account team?

We will notify you if your account team or rep changes.

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Transaction and Financial Information

When was the transaction publically announced?

September 7, 2016.

When will the transaction close?

We expect the transaction will close around April 2017.

Will the new McAfee provide financial targets going forward?

As a private entity, there is no federal obligation to share financials.

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