McAfee confirms $14bn sale to private equity consortium

Acquisition of McAfee by consortium led by Advent International and Permira Advisers is of the largest cybersecurity deals of all time

Cybersecurity software firm McAfee has agreed to a takeover by a consortium of private equity firms led by Advent International and Permira Advisers for more than $14bn in one of the biggest cybersecurity deals of all time.

The consortium of investors also includes private equity firm Crosspoint Capital Partners, the Canada Pension Plan Investment Board (CPPIB), Singaporean sovereign wealth fund GIC and the Abu Dhabi Investment Authority.

Rumours of a possible McAfee sale were first reported on Friday by the Wall Street Journal and Bloomberg, with shareholders set to receive $26 a share which represents a premium of approximately 22.6 per cent over McAfee's closing share price of $21.21 on 4 November.

The all-cash transaction is valued at approximately $12bn on an equity value basis,and over $14bn on an enterprise value basis after giving effect to repayment of McAfee debt.

"This transaction is a testament to McAfee's market-leading online protection solutions, our talented employees, and outstanding customers and partners," said McAfee president and CEO Peter Leav.

"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."

The takeover will see McAfee once again go private following a brief spell as a public company, having undergone an IPO last October.

McAfee became a consumer-only business earlier this year when it sold off its enterprise division to Symphony Technology Group in a deal worth $4bn. Symphony then announced plans to merge the business with FireEye Products to create a new company with $2bn revenues.

McAfee was previously owned by Intel, which acquired the business in 2010 for $7.7bn but sold a 51 per cent stake in 2016 to private equity firm TPG Capital. TPG then sold part of its stake to another private equity firm Thoma Bravo, before McAfee opted to IPO in 2020.

"McAfee is one of the most trusted brands in the essential business of consumer digital protection," said Bryan Taylor, head of Advent's Technology Investment Team and a managing partner in Palo Alto.

"As consumers face new and complex cyber risks, we see tremendous opportunity to build on McAfee's differentiated technology platform to continue delivering innovative solutions that can protect all facets of the digital lives of people around the world.

"We look forward to working alongside our investment partners and the talented McAfee team to continue setting the bar for consumer digital protection."

The transaction is expected to close in the first half of 2022, subject to customary closing conditions.