McAfee said Monday that a consortium led by US private equity firm Advent International will privatize the cybersecurity company in a $ 14 billion deal.
The deal comes as a pandemic shift to remote working, and an increase in cyberattacks has fueled demand for antivirus and digital security software.
Founded in 1987 by US tech entrepreneur John McAfee, the company was the first to introduce a commercial antivirus program. Intel bought it in 2011 when McAfee itself was no longer involved.
In the past few years, McAfee has strengthened its core consumer cybersecurity software business through price increases, new affiliate programs, and good customer retention rates.
As part of the transaction, the group of investors will purchase all of the outstanding McAfee common shares for $ 26 (approx.
The purchase price represents a premium of 22.6 percent compared to the closing price of McAfee stock of US $ 21.21 (approximately 1,570 rupees) on November 4th, the last trading day before the Wall Street Journal reported on the deal talks.
The shares of the San Jose, California-based company, which debuted in the market last year, fell more than 3 percent in pre-trading hours to $ 25.36 (approximately rupees 1,870), slightly below the offer price.
In a similar deal in August, US cybersecurity company NortonLifeLock agreed to buy London-listed rival Avast for up to $ 8.6 billion (about Rs.64,805 billion) to create a leading provider of consumer security software .
The consortium led by Advent also includes the private equity firms Permira Advisers, Crosspoint Capital Partners and Canada Pension Plan Investment Board.
Goldman Sachs and Morgan Stanley are the financial advisors to McAfee.
© Thomson Reuters 2021