Connect with us

Hi, what are you looking for?

SecurityWeekSecurityWeek

Cloud Security

McAfee Sheds Enterprise Business in $4 Billion Deal

McAfee is changing owners again as part of a $4 billion all-cash transaction that includes the sale of its enterprise business unit.

McAfee is changing owners again as part of a $4 billion all-cash transaction that includes the sale of its enterprise business unit.

McAfee, based in San Jose, Calif., announced on Monday it was selling its enterprise operations Symphony Technology Group (STG), a private equity firm that also owns security behemoth RSA Corp.

The decision to shed the enterprise business follows a similar move by McAfee’s traditional rival Symantec, which sold off its enterprise unit and rebranded as the NortonLifeLock consumer security brand.

McAfee President and CEO Peter Leav said the enterprise company will be rebranded at a later date. “This transaction will allow McAfee to singularly focus on our consumer business and to accelerate our strategy to be a leader in personal security for consumers.”

Leav described STG as the right partner to continue strengthening McAfee’s enterprise business and said the latest sale is “testament to the business’ industry-leading solutions and most notably to the outstanding contributions of our employees.”

The transaction is expected to close by the end of 2021, subject to customary regulatory approvals and closing conditions.

McAfee said its business-facing enterprise business is popular among Fortune 100 firms around the world, pulling in about $1.3 billion in net revenue in fiscal year 2020.

Last October, McAfee set the terms for an initial public offering (IPO) while announcing it was offering roughly 31 million of its own shares.

Advertisement. Scroll to continue reading.

The company revealed in an S-1 form filed with the U.S. Securities and Exchange Commission that it’s offering a total of 37 million shares, including roughly 6 million from stockholders. McAfee says it will not get any of the proceeds from the sale of stockholder shares.

McAfee was acquired by Intel in 2010 for $7.68 billion and in 2014 the chipmaker announced that McAfee would become Intel Security. In 2016, Intel decided that McAfee would again become an independent company after TPG Capital acquired a 51% stake. 

McAfee claims its products protect over 600 million devices and its solutions are used by many Fortune 100 companies. The company says its net revenue increased from $1.9 billion in 2011 to $2.6 billion in 2019. For the first half of 2020, it reported a net revenue of $1.4 billion and a net income of $31 million.

Related: Peter Leav Named CEO of McAfee

Written By

Ryan Naraine is Editor-at-Large at SecurityWeek and host of the popular Security Conversations podcast series. He is a security community engagement expert who has built programs at major global brands, including Intel Corp., Bishop Fox and GReAT. Ryan is a founding-director of the Security Tinkerers non-profit, an advisor to early-stage entrepreneurs, and a regular speaker at security conferences around the world.

Click to comment

Trending

Daily Briefing Newsletter

Subscribe to the SecurityWeek Email Briefing to stay informed on the latest threats, trends, and technology, along with insightful columns from industry experts.

Gain valuable insights from industry professionals who will help guide you through the intricacies of industrial cybersecurity.

Register

Join us for an in depth exploration of the critical nature of software and vendor supply chain security issues with a focus on understanding how attacks against identity infrastructure come with major cascading effects.

Register

Expert Insights

Related Content

Application Security

Cycode, a startup that provides solutions for protecting software source code, emerged from stealth mode on Tuesday with $4.6 million in seed funding.

Cybercrime

The changing nature of what we still generally call ransomware will continue through 2023, driven by three primary conditions.

Data Protection

The cryptopocalypse is the point at which quantum computing becomes powerful enough to use Shor’s algorithm to crack PKI encryption.

Identity & Access

Zero trust is not a replacement for identity and access management (IAM), but is the extension of IAM principles from people to everyone and...

Cybercrime

A recently disclosed vBulletin vulnerability, which had a zero-day status for roughly two days last week, was exploited in a hacker attack targeting the...

Artificial Intelligence

The CRYSTALS-Kyber public-key encryption and key encapsulation mechanism recommended by NIST for post-quantum cryptography has been broken using AI combined with side channel attacks.

Risk Management

The supply chain threat is directly linked to attack surface management, but the supply chain must be known and understood before it can be...

CISO Conversations

SecurityWeek talks to Billy Spears, CISO at Teradata (a multi-cloud analytics provider), and Lea Kissner, CISO at cloud security firm Lacework.