Security software companyMcAfee is going private via a buyout from an investor group in a deal valued at more than $14 billion, the company announced Monday. Bloomberg first reported last week that a likely deal was imminent.
McAfee was founded in 1987 by John McAfee and became known for its computer antivirus software. McAfee, the founder, left McAfee, the company, in 1994, and the company was acquired by Intel in 2010 for $7.68 billion. In 2014, Intel announced it was phasing out the McAfee brand name for the security software and rebranding it as “Intel Security.”
Last October, the company returned to the public stock market. McAfee said in the announcement that it will continue as a “pure-play consumer cybersecurity” company after selling its Enterprise business to private equity firm Symphony Technology Group for $4 billion in July.
The company said the deal announced Monday to sell to the investor group, which includes Advent International Corp.,Permira Advisers,and Crosspoint Capital Partners, is expected to close in the first half of 2022.
John McAfee had led a troubled life after departing the company; in 2012, he fled to Guatemala as authorities in Belize sought to question him in connection with a neighbor’s murder. In March, he was charged with securities fraud over a “pump and dump” cryptocurrency scheme, where authorities said he and his bodyguard persuaded their Twitter followers to invest in certain coins, then sold their holdings in the currencies when the prices went up. McAfee was found dead in a prison cell in Barcelona in June, not long after Spain had approved extraditing him to the US to face tax fraud charges.
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Now, let's delve into the information presented in the article about McAfee going private in a buyout deal valued at over $14 billion:
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McAfee's History and Evolution:
- Founded in 1987 by John McAfee, the company initially gained prominence for its computer antivirus software.
- In 1994, John McAfee left the company, and in 2010, Intel acquired McAfee for $7.68 billion.
- Intel subsequently phased out the McAfee brand name in 2014, rebranding the security software as "Intel Security."
- Last October, McAfee returned to the public stock market.
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Current Buyout Deal:
- McAfee is undergoing a significant transition by going private through a buyout from an investor group.
- The deal is valued at more than $14 billion, and Bloomberg had reported the likelihood of the deal before its official announcement.
- The investor group includes Advent International Corp., Permira Advisers, and Crosspoint Capital Partners.
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Business Strategy Shift:
- McAfee is positioning itself as a "pure-play consumer cybersecurity" company following the sale of its Enterprise business to private equity firm Symphony Technology Group for $4 billion in July.
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Deal Timeline:
- The announced deal is expected to close in the first half of 2022.
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John McAfee's Troubled Life:
- John McAfee, the founder of McAfee, led a troubled life after leaving the company.
- In 2012, he fled to Guatemala to evade authorities in Belize who sought to question him in connection with a neighbor's murder.
- In March, he was charged with securities fraud related to a "pump and dump" cryptocurrency scheme.
- McAfee was found dead in a prison cell in Barcelona in June, shortly after Spain had approved his extradition to the US for tax fraud charges.
This comprehensive overview provides insights into McAfee's corporate history, its recent business decisions, and the personal challenges faced by its founder, John McAfee. The cybersecurity landscape is ever-evolving, and understanding the dynamics of industry players is crucial for assessing the broader implications of such strategic moves.
