Investor group to acquire Security Software company McAfee for $14 Billion

McAfee announced that an investor group will acquire McAfee for $14 Billion enterprise value in an all-cash transaction.

The investor group includes Advent, Permira, Crosspoint Capital, CPP Investments, GIC, and ADIA. The transaction involves the acquisition of all outstanding shares of McAfee common stock for $26.00 per share, according to the announcement.

Founded in 1987 by John McAfee, McAfee is renowned for its antivirus software. Intel acquired McAfee in 2010 for $7.68 billion. Later in 2014, TPG helped carve out McAfee as a pure-play cybersecurity company from Intel.

McAfee President and Chief Executive Officer, Peter Leav, 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."

Chief Executive Officer of TPG and Chair of the McAfee Board, Jon Winkelried, said, "Today’s announcement signals continued growth and opportunity for McAfee. Over the last four years, the company has expanded its product portfolio, enhanced its go-to-market strategy, and pursued strategic M&A, including the divestiture of its enterprise business. We’re proud that today McAfee is a leading consumer cybersecurity franchise, protecting the digital lives of 20 million subscribers across the globe."

Last year, McAfee completed its initial public offering. TPG and Intel are still shareholders in the company. McAfee will continue to be run as a pure-play consumer cybersecurity company, notes the announcement. 

McAfee’s Enterprise business was sold to private equity firm Symphony Technology Group for $4.0 billion, which closed on July 27, 2021.

The transaction is expected to close in the first half of 2022 subject to regulatory approvals. Once acquisition completes, McAfee common stock will not be listed on any public securities exchange, notes the announcement.