McAfee says a conglomerate led by US private equity firm Advent International will acquire the cybersecurity firm in a $14 billion deal, as the deal comes at a time when the demand for antiviruses and digital protection software is flying after the shift to remote work due to the pandemic and the rise in the number of cyber attacks.
McAfee is the first company to bring an antivirus to market as a commercial product. It was acquired by Intel in 2011. In the past few years, McAfee has strengthened its core business in cyber security software focused on retail customers by raising prices, new partnerships programs have good retention and repeat purchase rates.
As part of the deal, the investment group will acquire all of McAfee’s common stock at $26 per share in full cash, giving the company a $12 billion stock-based valuation, noting that the price represents a value higher by 22.6% than the closing price of McAfee stock, which is equal to $21.21 on November 4, which is the last trading day before the Wall Street Journal published talks about the deal. According to today’s market, McAfee’s stock declined, which was launched by the company for trading in the markets last year, by more than 3%, recording $25.36 in pre-market trading, just below the offer price.
In a similar deal in August, cybersecurity firm NortonLifeLock agreed to buy its London-listed competitor Avast for $8.6 billion, creating a leading consumer security software company.