The deal comes as a pandemic-driven shift to remote working
and a rise in cyber attacks have spurred demand for antivirus and digital
security software.
The company, founded by US technology entrepreneur John
McAfee in 1987, was the first to bring to market a commercial antivirus. Intel
bought it in 2011, when McAfee himself no longer had any involvement.
In the last few years, McAfee has strengthened its main
cybersecurity software business that focuses on retail customers via price
increases, new partner programs and good retention rates.
As part of the transaction, the investor group will acquire
all outstanding shares of McAfee common stock for $26 per share in an all-cash
deal that values McAfee at about $12 billion on an equity basis.
The purchase price represents a premium of 22.6 percent over
McAfee's closing share price of $21.21 on November 4, the last trading day
before the Wall Street Journal reported about the deal talks.
Shares of the San Jose, California-based company, which made
its market debut last year, were down more than 3 percent at $25.36 in
premarket trading, slightly below the offer price.
In a similar deal in August, US cybersecurity company
NortonLifeLock had agreed to buy London-listed rival Avast for up to $8.6
billion to create a leader in consumer security software.
The Advent-led consortium also includes private equity firms
Permira Advisers, Crosspoint Capital Partners and Canada Pension Plan
Investment Board among others.
Goldman Sachs and Morgan Stanley are the financial advisers
to McAfee. © Reuters