Top Antivirus firm McAfee divides its enterprise and consumer operations by selling its enterprise business to STG (Symphony Technology Group) for 4 billion USD in cash.
The transaction will be done by the end of the current year.
McAfee follows its top rival Symantec’s footsteps, which sold its enterprise business to Broadcom in November 2019 for 10.7 billion USD and continues to operate its consumer business under the NortanLifeLock brand.
President and Chief Executive Officer of McAfee, Peter Leav, said that this deal would allow his firm to focus on consumer business and accelerate strategy to be the personal security leader.
He said, “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.”
After the transaction is done, McAfee expects to reduce the debt by 1 billion USD and become a pure-play consumer cybersecurity company.
The company will remain its name while the enterprise business will be renamed in the coming time.
In a statement, the company declared that about $2.75 million of the proceeds would be distributed by McAfee’s controlled subsidiary Foundation Technology Worldwide on a pro-rata basis to all shareholders, including McAfee Corp.
The firm will pay 300 million USD as taxes and transaction-related payments and give a one-time special dividend of $4.5/ share to its Class A Common shareholders.
The firm also plans to use a part of the proceeds to pay about 175 million USD in transaction expenses and other one-time charges.
The split’s announcement came soon after McAfee completed a 740 million USD IPO valued at 9.5 billion USD.
STG has moved done some significant takeovers in cybersecurity in the past few years, like purchasing Bedford, Mass.-based encryption pioneer RSA in September 2020.