The investor group is expected to take ownership of the computer security company in the first half of 2022 after the transaction goes through. Some of the big names that make up the investor group include:
Advent International Corporation Permira Advisers LLC Crosspoint Capital Partners Canada Pension Plan Investment Board GIC Private Limited A wholly-owned subsidiary of the Abu Dhabi Investment Authority
According to McAfee’s announcement (update editorial team: announcement doesn’t seem to be accessible anymore), the investor group will provide the company with financial and operational resources so it can further enhance its products and services. “McAfee’s strong brand awareness, diversified distribution model, and customer-centric approach has made it a clear leader in the rapidly evolving consumer online protection space,” the announcement read. “The Investor Group will support McAfee as it continues to broaden its differentiated online protection solutions and drive long-term value through market expansion,” the announcement added.
Details of the Acquisition
McAfee’s current iteration is a product of a partnership between Intel and private equity firm TPG. In 2017, the two entities decided to carve out McAfee from Intel’s core operations. It was then set up as a “pure-play cybersecurity company with access to significant capital, operational and technology resources.” Last year, the company completed its initial public offering (IPO). Both Intel and TPG continue to be shareholders in the company. According to the announcement, the investor group will purchase all outstanding McAfee common stock shares in an all-cash transaction. These are valued at $26 per share, which is around 22.6% above their closing share price on November 4 ($21.21). This values the transaction at approximately $12 billion, which rises to $14 billion after accounting for McAfee debt repayment.
Comments from Key Executives
The announcement also contains comments from several key executives of the involved parties. “This transaction is a testament to McAfee’s market-leading online protection solutions, our talented employees, and outstanding customers and partners,” Peter Leav, McAfee President and Chief Executive Officer said. “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,” Leav added. Bryan Taylor, head of Advent’s Technology Investment Team, waxed lyrical about the McAfee brand. He said, “McAfee is one of the most trusted brands in the essential business of consumer digital protection.” “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,” Taylor added.
