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McAfee to sell enterprise business for $4 billion

Cyber security firm McAfee holds a virtual IPO at NASDAQ Marketsite

(Reuters) – McAfee Corp said on Monday it would sell its enterprise business to a consortium led by Symphony Technology Group for $4 billion in cash, sending the cybersecurity firm’s shares up nearly 3% in premarket trade.

The deal, subject to customary regulatory approvals and closing conditions, is expected to close by the end this year, McAfee said.

In the last few years, McAfee has strengthened its main cybersecurity software business that focuses on retail customers via price increases, new partner programs and good retention rates.

Its enterprise business recorded $1.3 billion in net revenue in fiscal year 2020, McAfee said.

Goldman Sachs & Co LLC and Morgan Stanley & Co LLC acted as financial advisers to McAfee, while Ropes & Gray LLP served as legal adviser. UBS Investment Bank, Jefferies LLC and BofA Securities acted as financial advisers, and Paul Hastings LLP acted as legal adviser to Symphony.

(Reporting by Akanksha Rana in Bengaluru; Editing by Krishna Chandra Eluri and Vinay Dwivedi)

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