Before acquiring the business arm of McAfee, Symphony Technology Group notably bought RSA Dell last February for $ 2 billion.
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Security software publisher McAfee has sold its Enterprise business to the private investor consortium Symphony Technology Group (STG) for $ 4 billion, becoming a pure player.
Entirely in cash, the transaction is expected to close by the end of 2021, subject to regulatory approvals and customary closing conditions. McAfee chairman and CEO Peter Leav said the transaction allows McAfee to focus on its consumer business. Following the transaction, McAfee will retain its name. On the other hand, the Business activity, which generated $ 1.3 billion in net revenue in fiscal year 2020, will be renamed in the coming months.
William Chisholm, Managing Partner of the Symphony Technology Group (STG), said he is determined for this Enterprise division to become the leading provider of device-to-cloud cybersecurity and that he will continue to provide, in partnership with the current team of McAfee, exceptional performance for business and government customers around the world. STG’s portfolio includes software publishers, data and analytics companies, including cybersecurity solutions provider RSA, which took over Dell last February for $ 2 billion.
A buyout that reduces McAfee’s debt by $ 1 billion
The sale of the Enterprise division will allow McAfee to reduce its debt by approximately $ 1 billion. A portion of these funds will also be used to pay the usual $ 175 million in transaction fees and other one-off charges, with the remainder of the $ 2.75 billion to be prorated to all holders, including McAfee Corp. , by McAfee’s controlled subsidiary, Foundation Technology Worldwide.
McAfee Corp. will use its share to pay approximately $ 300 million in corporation taxes and other related expenses related to the transaction, and will use the remaining amount to pay a one-time exceptional dividend of $ 4.50 per share to the holders of its common shares. Class A. McAfee also expects to pay approximately $ 300 million in additional severance costs and cost reduction, part of which will be covered by the proceeds of the transaction.
Until closing, McAfee will continue to lead and operate the Enterprise business. In the meantime, McAfee, STG and the Enterprise Business leadership team will work together to plan and successfully transition the business, employees and customers.
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