The information security provider, McAfee, will be bought by a consortium of private investors, led by the American Advent International, for US$ 14 billion. The purchase was announced by the company this Monday (08), through a press release. With the purchase, the pioneer in providing antivirus software, returns to being a privately held company and ceases trading shares on the stock exchange.
In the statement, McAfee says the deal was driven by the new coronavirus pandemic (SARS-CoV-2), which has fueled a forced digital transformation and increased the number of professionals working on the hybrid or completely remote model. These changes in office models were seen by the company as a stimulus to the antivirus software and security services industry in general.
The group of investors must acquire each of the company’s common shares for US$26 each, totaling approximately US$12 billion. “The investor group will acquire all outstanding McAfee common stock for $26.00 per share in an all-cash transaction valued at approximately $12 billion based on equity value and more than $14 billion based on value of the company after the donation takes effect for the repayment of McAfee debt,” writes a McAfee spokesman.
Advent’s head of technology investment and Palo Alto’s managing partner believes the purchase can boost business for a company that is already an industry leader. “McAfee is one of the most trusted brands in the core digital consumer protection business. We look forward to working alongside our investment partners and the talented McAfee team to continue setting the standard for digital consumer protection“, explains.
McAfee was founded by none other than John McAfee, one of the most eccentric personalities in the information technology and security market, in 1987. But since 2011, after the sale to Intel, Mr McAfee is no longer involved in the company’s business.
McAfee has been struggling to grow its overall income for a few years now, if trading, trading shares and increasing the value of your products and software, in addition to negotiating with more trading partners.
The transaction should be completed in the first half of next year, “subject to customary closing conditions including, but not limited to, McAfee shareholder approval, receipt of regulatory approvals, and US foreign investment committee clearance […] Upon completion of the transaction, McAfee’s common shares will no longer be listed on any public stock exchange.“, concludes the statement.
In June of this year, the cybersecurity provider, FireEye, was sold to the Symphony Technology Group (STG) for $1.2 billion (at the time, more than BRL 6 billion), the same investment consortium that was responsible for McAfee and the cryptography pioneer, RSA.
In late June 2021, John McAfee, the company’s founder, was found dead in a prison in Spain. Check out The Hack’s special about the career, life and death of one of the most curious personalities in the corporate world.
As early as October 2021, the STG, aiming to create an unbeatable leader in the information security technology supply market, incorporated FireEye’s solutions with McAfee’s, merging the companies into a single product.
The company will now be controlled by investment firms Advent International, Permira Advisers, Crosspoint Capital Partners, Canada Pension Plan Investment Board, GIC Private Limited and Abu Dhabi Investment Authority.