McAfee Corp will be acquired by a consortium led by Advent International
McAfee Corp said on Monday that a consortium led by US private equity firm Advent International will take the cybersecurity company private in a $14 billion deal.
The deal comes as a pandemic-driven shift to remote working and a rise in cyber attacks has fueled demand for antivirus and digital security software.
The company, founded in 1987 by American technology entrepreneur John McAfee, was the first to bring a commercial antivirus to market. Intel bought it in 2011, when Mr. McAfee was no longer involved.
Over the past few years, McAfee has strengthened its core cybersecurity software business focused on retail customers through price increases, new partner programs, and good retention rates.
As part of the transaction, the investor group will acquire all outstanding shares of McAfee’s common stock at $26 per share in a cash deal that values McAfee approximately $12 billion on an equity basis. The purchase price represents a 22.6 percent premium to McAfee’s closing share price of $21.21 on November 4, the last trading day reported by the Wall Street Journal about negotiations of the deal.
Shares of the California-based company San Jose, which debuted on the market last year, were down more than 3 percent in premarket trading at $25.36, slightly below the offer price.
In a similar deal in August, US cyber security company Norton LifeLock Inc. agreed to buy London-listed rival Avast plc for up to $8.6 billion to build a leader in consumer security software.
The Advent-led consortium also includes private equity firm Permira Advisors LLC, Crosspoint Capital Partners and the Canada Pension Plan Investment Board. Goldman Sachs & Company LLC and Morgan Stanley & Company LLC are financial advisors to McAfee.
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