McAfee Goes Private in $14 Billion Deal

announced McAfee said Monday that a consortium led by US private equity firm Advent International is taking the cybersecurity firm in a $14 billion deal.

The deal comes as a pandemic-driven shift to remote work and an increase in cyberattacks have spurred demand for antivirus and digital security software.

The deal includes Permira Advisers, Crosspoint Capital Partners, CPP Investments, GIC Private Limited and a wholly owned subsidiary of the Abu Dhabi Investment Authority.

As part of the deal, Union will acquire all outstanding shares of McAfee common stock for $26 per share in an all-cash transaction valued at approximately $12 billion based on the value of the shares, and more than $14 billion based on the value of the corporation after the activation of McAfee’s debt repayment.

The purchase price represents a premium of approximately 22.6 percent over the company’s closing price of $21.21 on November 4, 2021.

Upon completion of the transaction, Etihad will own McAfee as a privately owned company. The company continues to build on its success and record as a leader in consumer cybersecurity. This follows the sale of the enterprise business to private equity firm Symphony Technology Group for $4.0 billion, which closed on July 27, 2021.

The company, founded by American tech entrepreneur John McAfee in 1987, was the first to bring commercial antivirus software to the market. It was bought by Intel in 2011, when its founder no longer had a role.

And in the past few years. The company has strengthened its core business in cybersecurity software focused on retail customers. This is through price increases, new partner programs and good retention rates.

The deal is worth more than $14 billion

“This transaction is a testament to our leading online security solutions,” said Peter Leaf, McAfee President and CEO. and our talented staff. Distinguished clients and partners. We want to thank our employees for their continued hard work and commitment to the company. We are pleased to partner with leading companies that understand the cybersecurity landscape and have a proven track record of success.

The consortium provides the company with financial and operational resources to enhance its consumer offerings and take advantage of the rapid growth in consumer demand for digital protection services.

Moreover, in a similar deal in August. US cybersecurity firm Norton LifeLock has agreed to buy rival Avast. This is in exchange for $8.6 billion to create a leading consumer security software company.

McAfee sells enterprise business for $4 billion

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