McAfee said it will sell its corporate business ventures to a conglomerate led by Symphony Technology Group for $4 billion in cash, sending the computer security company’s shares up 3% in premarket trading Monday, with the deal is expected to be closed by the end of this year, knowing that it is subject to customary regulatory approvals and common closing conditions.
Over the past few years, McAfee has grown its core business of computer security software focused on retail customers by driving up prices, co-branding, and improving user retention rates. It is worth noting that the company’s business projects recorded net revenues of $1.3 billion in fiscal year 2020.
According to the deal, Goldman Sachs and Morgan Stanley will represent McAfee’s financial advisor, while Ropes & Gray will be its legal advisor, as for Symphony, UBS Investment Bank, Jefferies and BofA Securities will be its financial advisor, and Paul Hastings will be its legal advisor.
McAfee expects to pay a special dividend upon closing of the transaction of approximately $4.5 per ordinary Class A share, and the company will use the proceeds of the transaction to reduce its $1 billion debt.
According to today’s trading market, the company’s shares rose by 12.6%, recording an increase of nearly 30% since the beginning of the year so far, while the S&P 500 index gained by 2%.