Intel to spin out security unit, sell stake in business to TPG

(Reuters) - Intel Corp said it would spin out its cyber security division, formerly known as McAfee, and sell a majority stake in it to investment firm TPG for $3.1 billion in cash. TPG will own 51 percent of the new entity, valuing the entire company at $4.2 billion including debt. Intel, which bought McAfee for $7.7 billion in 2011, will retain a 49 percent stake in the business.