McAfee to see its enterprise business to the Private equity firm Symphony Technology Group (STG) for $4 billion in cash, with this McAfee will be only into the consumer business. The transaction is expected to close by end of 2021.
Its enterprise business recorded $1.3 billion in net revenue in fiscal year 2020, McAfee said. McAfee has strengthened its main cybersecurity software business that focuses on retail customers via price increases, new partner programs and good retention rates.
With this announcement of the deal with STG, McAfee’s enterprise business will be rebranded while its consumer business continues to be publicly traded under the McAfee name.
This transaction will allow McAfee to singularly focus on our consumer business and to accelerate our strategy to be a leader in personal security for consumers,” said McAfee President and Chief Executive Officer Peter Leav “STG is the right partner to continue strengthening our Enterprise business.
STG is the right partner to continue strengthening our Enterprise business, and the outcome is a testament to the business’ industry-leading solutions and most notably to the outstanding contributions of our employees,” McAfee President and CEO Peter Leav said in a statement.
“This transaction will allow McAfee to singularly focus on our consumer business,” said Peter Leav.
The split comes less than five months after McAfee completed a $740 million initial public offering that valued the cybersecurity giant at $9.5 billion.
McAfee’s stock is up $2.31 (10.9 percent) to $23.50 in pre-market trading Monday, which is the highest the company’s stock has traded since the IPO. The all-cash deal is expected to close by the end of 2021, according to McAfee.
