McAfee is changing hands once more as part of a $4 billion all-cash deal that entails the selling of the company’s enterprise business arm.
McAfee, headquartered in San Jose, revealed on Monday that it will sell its enterprise operations to Symphony Technology Group (STG), a private equity company that also owns defence behemoth RSA Corp.
McAfee’s decision to sell off its enterprise division parallels that of McAfee’s traditional competitor Symantec, which sold off its enterprise division and rebranded as NortonLifeLock consumer protection.
The business group, according to McAfee President and CEO Peter Leav, will be rebranded at a later date. “With this deal, McAfee will be able to concentrate solely on our customer sector and accelerate our ambition to be a pioneer in consumer personal security.”
STG is the perfect partner for McAfee’s enterprise company, according to Leav, who added that the new acquisition is a “testament to the business’ industry-leading solutions and, most importantly, to the excellent efforts of our employees.”
Subject to customary regulatory approvals and closing terms, the deal is scheduled to close by the end of 2021.
McAfee’s market-facing enterprise business, which generates around $1.3 billion in net sales in fiscal year 2020, is common with Fortune 100 companies around the world, according to the company.
McAfee announced the terms of an initial public offering (IPO) in October, along with the announcement that it will be selling nearly 31 million of its own shares.
According to an S-1 form filed with the Securities and Exchange Commission, the company is selling a total of 37 million shares, with about 6 million coming from stockholders. According to McAfee, none of the proceeds from the selling of stockholder shares will go to the company.
Intel bought McAfee for $7.68 billion in 2010, and in 2014, the chipmaker announced that McAfee would become Intel Security. After TPG Capital purchased a 51 percent stake in McAfee in 2016, Intel decided that it would once again become an independent corporation.
McAfee says that its goods cover over 600 million devices and that several Fortune 100 businesses use its technologies. According to the company, net sales grew from $1.9 billion in 2011 to $2.6 billion in 2019. It had a net revenue of $1.4 billion and a net gain of $31 million in the first half of 2020.