McAfee To Sell Its Enterprise Business For $4.0 Bln - Quick Facts

(RTTNews) - McAfee Corp. (MCFE) said that it agreed to sell its Enterprise business to a consortium led by Symphony Technology Group in an all-cash transaction for $4.0 billion. McAfee will become a pure play consumer cybersecurity company.

The transaction is expected to close by the end of 2021.

McAfee expects to issue an estimated $4.50 special dividend per Class A common share upon closing of the transaction. The company expects to reduce debt by approximately $1 billion, which is expected to result in a neutral impact to net leverage ratio.

McAfee expects to use a portion of the proceeds from the transaction to repay about $1 billion of existing indebtedness. It also expects to the proceeds to pay about $175 million in customary transaction expenses and other one-time charges.

The $2.75 billion of remaining proceeds will be distributed by Foundation Technology Worldwide, McAfee's controlled subsidiary, on a pro rata basis to all holders, including McAfee Corp.

McAfee noted that it will use its pro rata portion of such proceeds to pay approximately $300 million in required corporate taxes and related payments in connection with the transaction, and will use all remaining proceeds to pay a one-time special dividend of $4.50 per share to holders of our Class A Common Stock.