Security software giant McAfee has announced it has reached a deal to sell its enterprise business for an all cash fee of $4bn. The firm said it has entered a definitive agreement with a consortium led by Symphony Technology Group (STG), with the transaction expected to be completed by the end of 2021, subject to customary regulatory approvals and closing conditions.
Following completion, McAfee will become a consumer-only business, retaining its current name. However, its enterprise business, which serves 86% of Fortune 100 companies around the world, is expected to be rebranded in the coming months, although McAfee will continue operating it until the deal has closed.
The leader in device-to-cloud cybersecurity solutions also revealed it will use the proceeds of the transaction to pay off approximately $1bn of debt it currently has.
Peter Leav, McAfee president and chief executive officer, commented: “STG is the right partner to continue strengthening our enterprise business, and this outcome is a testament to the business’ industry-leading solutions and most notably to the outstanding contributions of our employees.
“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.”
William Chisholm, managing partner at STG, said: “McAfee is one of the most iconic brands in enterprise security and has a reputation for innovation, quality and leadership.
“We are fully committed to driving the business’ strategy to be the leading device-to-cloud cybersecurity company by partnering with McAfee’s existing world class team to continue delivering exceptional performance to enterprises and government clients globally.”
The announcement has come on the same day that McAfee’s founder, John McAfee, was officially indicted on charges of cryptocurrency fraud, money laundering and more, which could see him behind bars for decades.