HP Enterprise to spin off software units; Intel to spin off McAfee

Hewlett Packard Enterprise Co. will spin off software units in an $8.8-billion deal that it says will help it focus on faster-growing businesses.

The Palo Alto, Calif., company said Wednesday that the spun-off software businesses — they include big data, security for big companies and IT operations management units — will merge with British software company Micro Focus International.

Hewlett Packard Enterprise is to get a $2.5-billion cash payment and a 50.1% stake in the combined company.

The deal requires antitrust approval and is expected to close in the third quarter.

Hewlett-Packard Co. split into two companies last year, with Hewlett Packard Enterprise selling commercial tech products and services, while HP Inc. focuses on personal computers and printers.

Also Wednesday, Intel Corp. agreed to spin off its cybersecurity unit into a new company, called McAfee, in a deal with private equity firm TPG.

The deal values McAfee at $4.2 billion, including its debt of about $2 billion.

Intel, based in Santa Clara, Calif., bought McAfee in 2011 for $7.68 billion.

Intel said Wednesday that McAfee will be one of the largest cybersecurity firms and will be led by Chris Young, senior vice president and general manager of Intel’s security group.

Intel will get $3.1 billion in cash and retain a 49% stake in the new company. TPG, based in Fort Worth, will invest $1.1 billion in McAfee and own 51% of the company. The transaction is expected to close in the second quarter of next year.

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UPDATES:

2:50 p.m.: This article was updated to add that HP Enterprise is spinning off software units.

This article was originally published at 2:20 p.m.