Symphony Technology Buys McAfee's Enterprise Biz for $4 Bn

McAfee, anti-virus software firm has sold its enterprise business to a consortium led by Symphony Technology Group (STG). The deal is said to be closed for about $4 billion.

Being established 30 years ago, McAfee's enterprise business has evolved to be a trusted partner for 86 percent of the Fortune 100 firms across the globe and is reported $1.3 billion in net revenue in fiscal year 2020.

Expecting the transactio to close by the end of this year, Peter Leav, President and CEO, McAfee says, "STG is the right partner to continue strengthening our Enterprise business, and this outcome is a testament to the business' industry-leading solutions and most notably to the outstanding contributions of our employees."

Furthermore, in a statement he continued, "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."

In addition to the repayment of approximately $1 billion of existing McAfee indebtedness, McAfee also expects to use a portion of the proceeds from the transaction to pay approximately $175 million in customary transaction expenses and other one-time charges.

William Chisholm, Managing Partner, STG says, "We are fully committed to driving the business' strategy to be the leading device-to-cloud cybersecurity company by partnering with McAfee's existing world-class team to continue delivering exceptional performance to enterprises and government clients globally."

McAfee also expects to pay approximately $300 million in additional one-time separation costs and stranded cost optimisation, a portion of which will be expenses paid by proceeds from the transaction.

The company further states, "McAfee will retain its name and will continue its singular focus on delivering leading solutions to protect consumers and being a leader in personal security for consumers. The Enterprise business will be re-branded, which is expected to occur in the coming months."