Cybersecurity company McAfee Corp has confirmed to have been sold to a consortium of private equity firms for $26/share in cash, or over $14B, including debt. An investor group led by Advent International, Permira Advisers, Crosspoint Capital, Canada Pension Plan Investment Board, GIC Private, and a unit of the Abu Dhabi Investment Authority agreed to purchase McAfee, according to a statement.
The deal represents a 23% premium to Nov. 4, before media reports about a potential sale. Cybersecurity pioneer McAfee went public a little over a year ago and has been purchased previously. McAfee was acquired by Intel in 2011 for about $7.7B.
TPG stepped in to purchase a 51% stake in 2016, and PE firm Thoma Bravo picked up a minority share in 2017. The deal is expected to close in the first half of 2022, subject to customary closing conditions, including regulatory approvals and clearance by the Committee on Foreign Investment in the U.S.
The transaction also includes a 45-day “go-shop” period where McAfee can consider alternative acquisition proposals. Intel and certain funds affiliated with TPG have entered into a voting agreement pursuant to which they have agreed to vote their shares in favor of a transaction.
Goldman Sachs and Morgan Stanley are serving as financial advisors to McAfee and JPMorgan, BofA, Barclays and Citi are serving as financial advisors to the investor group.