Key Takeaways
- • McAfee Corp. is being acquired by a six-entity investor group led by Advent International and Permira for $26.00 per share in an all-cash transaction valued at approximately $12 billion in equity value and over $14 billion on an enterprise value basis, including debt repayment.
- • The acquisition price represents a 22.6% premium over McAfee's closing share price of $21.21 on November 4, 2021, the last trading day before media reports of a potential sale.
- • The investor consortium comprises Advent International, Permira Advisers, Crosspoint Capital Partners, Canada Pension Plan Investment Board (CPP Investments), GIC Private Limited, and the Abu Dhabi Investment Authority (ADIA).
- • Upon completion, McAfee will become a privately held company and continue operating as a pure-play consumer cybersecurity leader, following its prior divestiture of the Enterprise business to Symphony Technology Group.
- • The transaction was announced on November 8, 2021, and capitalizes on pandemic-driven demand for antivirus and digital security software amid increased remote work adoption and rising cyber threats.
Summary
McAfee Corp. announced on November 8, 2021, that it has entered into a definitive agreement to be acquired by an investor group led by private equity firms Advent International and Permira, alongside institutional investors Canada Pension Plan Investment Board, GIC Private Limited, Crosspoint Capital Partners, and the Abu Dhabi Investment Authority. The all-cash transaction values the company at approximately $12 billion on an equity basis, or over $14 billion on an enterprise value basis when accounting for debt repayment.
Under the terms of the agreement, McAfee shareholders will receive $26.00 per share in cash. This purchase price reflects a 22.6% premium to the company's closing stock price of $21.21 on November 4, 2021, the trading day immediately before media speculation regarding a potential sale emerged. The transaction will result in McAfee being taken private, with the investor group acquiring all outstanding shares of common stock.
The acquisition reflects strong market fundamentals in the cybersecurity sector, driven by accelerated digital transformation during the pandemic and heightened awareness of cyber risks. The deal positions McAfee to operate independently as a consumer-focused cybersecurity provider, building on its established track record following the previous divestiture of its Enterprise business to Symphony Technology Group. The transaction demonstrates continued institutional investor appetite for established cybersecurity platforms amid persistent demand for digital protection solutions.
Under the terms of the agreement, McAfee shareholders will receive $26.00 per share in cash. This purchase price reflects a 22.6% premium to the company's closing stock price of $21.21 on November 4, 2021, the trading day immediately before media speculation regarding a potential sale emerged. The transaction will result in McAfee being taken private, with the investor group acquiring all outstanding shares of common stock.
The acquisition reflects strong market fundamentals in the cybersecurity sector, driven by accelerated digital transformation during the pandemic and heightened awareness of cyber risks. The deal positions McAfee to operate independently as a consumer-focused cybersecurity provider, building on its established track record following the previous divestiture of its Enterprise business to Symphony Technology Group. The transaction demonstrates continued institutional investor appetite for established cybersecurity platforms amid persistent demand for digital protection solutions.
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