McAfee sold to consortium led by Advent International for $14 bn

The consortium purchasing McAfee includes Advent International, Permira Advisers, Crosspoint Capital Partners, Canada Pension Plan Investment Board and more.

Published:Tue, November 09, 2021 5:58pm

By Karanveer Singh Arora


A consortium led by US private equity firm Advent International will be taking over the cyber security company, McAfee in a $14 billion (approximately Rs 1,03,572 crore) deal. Under the deal, the investor group will acquire all outstanding shares of McAfee common stock for $26 per share in cash, valuing the company at around $12 billion (approximately Rs 88,784 crore).

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There has been a pandemic-driven shift to remote working, due to which we have seen a rise in cyber attacks. This has led to an increased demand for antivirus and digital security software. In the last few years, McAfee had strengthened its main cybersecurity software business via price increases, new partner programs and good retention rates.


To recall, McAfee was started by John McAfee in 1987, and it was the first company to bring to market a commercial antivirus. Intel bought the company in 2011.

According to the deal, the consortium will be paying a premium of 22.6 percent over McAfee's closing share price of $21.21 as seen on November 4. This is the last trading day since Wall Street Journal reported about the deal talks.


To recall, a similar deal was struck back in August for the US-based cybersecurity company NortonLifeLock, which had agreed to buy London-listed rival Avast for up to $8.6 billion (roughly Rs. 64,805 crores) to become the leader in consumer security software.

The consortium purchasing McAfee includes Advent International, Permira Advisers, Crosspoint Capital Partners, Canada Pension Plan Investment Board and more. Goldman Sachs and Morgan Stanley currently are the financial advisers to McAfee for this deal.

To recall, McAfee went public back in October 2020 with a valuation of $3.6bn, after which it spun off its enterprise security business in March for $4bn in another cash deal.

"This transaction is a testament to McAfee's market-leading online protection solutions, our talented employees, and outstanding customers and partners," said McAfee president and CEO Peter Leav in a statement today.

"We want to thank our employees for their continued hard work and commitment to McAfee. We are thrilled to be partnering with premier firms who truly understand the cybersecurity landscape and have a proven track record of success."

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