McAfee returned to the public market via an IPO last October.
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The security-software company McAfee disclosed an agreement to sell its enterprise-software business to a consortium led by the private-equity firm Symphony Technology Group for $4 billion in cash.
McAfee (ticker: MCFE) said Monday it will pay a special dividend of $2.75 billion, or about $4.50 a share, to holders when the deal closes. The company also expects to pay down its debt by about $1 billion, with $175 million to be used to cover transaction expenses and related one-time charges.
The stock rose 10.2%, to $23.34 on Monday morning.
McAfee’s enterprise-software segment had $1.3 billion in revenue in 2020, accounting for 45% of the total for the company. Consumer software accounted for the rest. The enterprise business grew 1% in the latest year, while consumer software was up 20%.
CEO Peter Leav said the deal “will allow McAfee to singularly focus on our consumer business and to accelerate our strategy to be a leader in personal security for consumers.”
The company said it would retain the McAfee brand, and that the enterprise business will be rebranded. Symphony owns a portfolio of enterprise-software companies, including the security software specialist RSA. The deal is expected to close by year-end.
McAfee returned to the public market last October, with an initial public offering of 37 million shares at $20 each. The chip maker Intel had acquired McAfee in 2010 for $7.7 billion, but then sold a majority stake to the private-equity firm TPG in 2016 in a deal that valued McAfee at $4.2 billion.
Write to Eric J. Savitz at [email protected]
