Antivirus software company McAfee sold its business operations to a consortium led by Symphony Technology Group (STG) for $ 4 billion.
Founded 30 years ago, the McAfee company is now a trusted partner for 86% of the Fortune 100 companies globally, with net sales of $ 1.3 billion in fiscal 2020.
The deal is expected to close later this year.
“STG is the ideal partner to further strengthen our business. This result is a testament to the company’s industry-leading solutions and, in particular, the exceptional contributions of our employees, ”said Peter Leav, McAfee president and CEO.
“This transaction will allow McAfee to focus solely on our consumer business and accelerate our strategy to become the leader in consumer personal safety,” he said in a statement Monday night.
With the move, McAfee plans to reduce its debt by approximately $ 1 billion.
In addition to paying off McAfee’s existing debt of approximately $ 1 billion, McAfee plans to use a portion of the transaction proceeds to pay normal transaction costs and other one-time charges of approximately $ 175 million.
“We are committed to advancing the company’s strategy as a leader in device-to-cloud cybersecurity by working with McAfee’s existing world-class team to continue to provide exceptional service to business and government customers around the world,” said William Chisholm, Associate Managing Director of STG.
McAfee also expects an additional separation cost of approximately $ 300 million and a stranded cost optimization, part of which will come from transaction proceeds.
“McAfee will maintain its name and focus on providing leading consumer protection solutions and leadership in consumer personal safety. The company will change its name, which is expected in the coming months” says the company.