McAfee to Go Private in $14 Billion Group Deal Led by Advent

Published · Nov 11, 2021

McAfee Corp has announced that it will be going private in a $14 billion deal led by US private equity firm Advent International. This is not the first time investors have taken McAfee private.

There has been a rise in cyber attacks as businesses shift to working from home. This led to an increase in demand for cybersecurity solutions, such as those offered by McAfee. As such, the time for this deal is ripe.

The Advent-led group includes private equity firms Permira Adviser LLC, Crosspoint Capital Partners and Canada Pension Plan Investment Board, and a subsidiary of the Abu Dhabi Investment Authority, among others.

McAfee was listed on the NASDAQ just last year, in 2020. It had a lackluster opening in which shares fell 7%. How the company will fare going forward is uncertain. Still, analysts seem optimistic that it will perform well, due to the rise in demand for cybersecurity solutions.

A Household Name

Since its founding in 1987 by the late John McAfee, the McAfee brand has been a leader in cybersecurity for businesses and households alike. It originally sold antiviruses. However, it has since expanded to include other offerings.

It still appears on the top lists for antivirus software, and its core feature set is widely used. However, it has had trouble gaining a foothold in newer security solution arenas.

When it comes to privacy-centric offerings like VPNs and password managers, consumers prefer newer specialized solutions to legacy brands like McAfee and Norton. The older companies normally bundle these tools in with existing software suites.

McAfee going private is just another stage in a long life. New developments are sure to follow as cyberattacks, and the fear of them, increase.

Garan van Rensburg
Garan van Rensburg

Garan is a writer interested in how tech reshapes the environment, and how the environment reshapes tech. You'll usually find him inoculating against future shock and arguing with bots.