McAfee to sell its enterprise business for $4 billion

Cybersecurity firm McAfee said on Monday it would sell its enterprise business to a consortium led by Symphony Technology Group for $4 billion in cash. The transaction is expected to close by end of 2021.

McAfee President and Chief Executive Officer Peter Leav said, 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. STG is the right partner to continue strengthening our Entertainment business, and this outcome is a testament to the business’ industry-leading solutions and most notably to the outstanding contributions of our employees.

Following this transaction, McAfee expects to reduce debt by about $1 billion and is set to become a pure-play consumer cybersecurity company. McAfee will retain its name while the enterprise business will be rebranded in the coming months.

About $2.75 million of the proceeds will be distributed by McAfee's controlled subsidiary Foundation Technology Worldwide on a pro-rata basis to all shareholders including McAfee Corp. McAfee will pay about $300 million in required corporate taxes and related payments associated with the transaction and will use the remaining proceeds to pay a one-time special dividend of $4.50 per share to its Class A Common stockholders.

The company also plans to use a part of the proceeds to pay about $175 million in transaction expenses and other one-time charges.