Cyber security giant McAfee to be acquired by investor group for $14bn

Cyber security company McAfee has signed a deal worth over $14 billion to be acquired by an investor consortium led by Advent International and others.

The other investors in the buying group are Permira Advisers, Canada Pension Plan Investment Board (CPP Investments), Crosspoint Capital Partners, GIC Private Limited, and a fully-owned subsidiary of the Abu Dhabi Investment Authority (ADIA).

The deal will enable the NASDAQ-listed anti-virus company to go private.

Its shareholders are being offered a price of $26 per share in cash.

The transaction is valued at around $12 billion on an equity value basis. The investor group will assume nearly $2bn of McAfee’s debt.

Peter Leav — McAfee President and CEO said: “This transaction is a testament to McAfee’s market-leading online protection solutions, our talented employees, and outstanding customers and partners.

“We want to thank our employees for their continued hard work and commitment to McAfee. We are thrilled to be partnering with premier firms who truly understand the cybersecurity landscape and have a proven track record of success.”

Cyber security giant McAfee to be acquired by investor group for $14bn. Photo courtesy of Adc1999 at English Wikipedia.

In its new form as a privately held company, McAfee is expected to continue consolidating its growth as a pure-play consumer cybersecurity company.

The investor consortium will offer financial as well as operational resources to McAfee to further boost its consumer offering and capture the quick growth in consumer demand for digital protection services.

Brian Ruder — Co-Head of Technology at Permira Advisers said: “The need for personalized, innovative, and intuitive online protection services has never been greater. McAfee boasts an enviable brand, extensive partner ecosystem, loyal customer base and a rigorous commitment to product development.

“With our extensive experience in scaling global consumer technology and cybersecurity businesses, we are excited to work closely with McAfee and our fellow investors to help position the company for even greater heights.”

In July 2021, McAfee had divested its enterprise business to Symphony Technology Group in a $4bn deal.

McAfee was established in 2017 as a pure-play cybersecurity company after it was spun out by Intel in partnership with TPG. Last year, McAfee completed its initial public offering (IPO) with TPG and Intel continuing as its shareholders.

The deal is anticipated to close in the first half of 2022 should it satisfy the customary closing conditions. These include approval by McAfee’s shareholders, regulatory approvals, and clearance by the Committee on Foreign Investment in the US.

The deal is backed by Intel Americas and some funds affiliated with TPG Global, which have a combined voting power of 67.9% of the McAfee common stock.