McAfee Completes the Divestiture of Its Enterprise Business to Symphony Technology Group (STG)

Rhea-AI Summary

McAfee Corp. (Nasdaq: MCFE) has finalized the sale of its Enterprise business assets for $4.0 billion in cash to a consortium led by Symphony Technology Group. This strategic divestiture allows McAfee to concentrate on its consumer cybersecurity operations. The company plans to allocate part of the proceeds to repay $1 billion in debt and distribute a special cash dividend of $4.50 per Class A share. Detailed insights regarding the transaction's impact will be shared during the second quarter results on August 10.

Positive

• McAfee divested its Enterprise business for $4.0 billion, strengthening its focus on consumer cybersecurity.
• The transaction allows McAfee to reduce its indebtedness by approximately $1 billion.
• Shareholders will receive a one-time special cash dividend of $4.50 per share.

Negative

• None.

McAfee Corp. (Nasdaq: MCFE), a global leader in online protection, announced today the completion of the previously announced transaction to sell certain assets and the assumption of certain liabilities of McAfee’s Enterprise business to a consortium led by Symphony Technology Group (STG) in an all-cash transaction for $4.0 billion.

The divestiture of the Enterprise business reflects McAfee's commitment to singularly focus on the consumer business and to further accelerate its strategy as a leader in online protection as a pure-play consumer cybersecurity company.

As previously announced, McAfee expects to use a portion of the proceeds from the transaction to repay approximately $1 billion of existing indebtedness, and also pay a one-time special cash dividend of $4.50 per share of McAfee Corp.’s Class A common stock. McAfee will discuss the transaction’s impact in greater detail when it releases its second quarter results on August 10.

Goldman Sachs & Co. LLC and Morgan Stanley & Co. LLC are acting as financial advisors, and Ropes & Gray LLP and Baker McKenzie LLP are acting as legal advisors, to McAfee.

UBS Investment Bank, Jefferies LLC and BofA Securities are acting as financial advisors, and Paul Hastings LLP is acting as legal advisor, to STG. UBS Investment Bank, Jefferies Finance LLC and Bank of America are providing financing for the acquisition.

About McAfee

McAfee is a global leader in online protection. www.mcafee.com

View source version on businesswire.com: https://www.businesswire.com/news/home/20210727005937/en/

FAQ

What is the amount McAfee received from selling its Enterprise business?

McAfee received $4.0 billion in cash from the sale of its Enterprise business.

When will McAfee discuss the impact of the transaction?

McAfee will discuss the transaction’s impact during its second quarter results on August 10.

How much debt will McAfee repay from the proceeds of the transaction?

McAfee plans to repay approximately $1 billion of existing indebtedness.

What special dividend will McAfee pay to its shareholders?

McAfee will pay a special cash dividend of $4.50 per share of Class A common stock.