MCFE - McAfee stock surges on $4 billion divestment of enterprise business

McAfee (MCFE) has entered into a definitive agreement to sell its Enterprise business to a Symphony Technology Group-led consortium for $4B in cash. The sale allows McAfee to become a pure play consumer cybersecurity company.The Enterprise business had $1.3B in net revenue in FY20.The transaction is expected to close by the end of 2021. After the closing, McAfee expects to issue a $4.50 special dividend per Class A share.McAfee expects to reduce debt by $1B.“STG is the right partner to continue strengthening our Enterprise business, and this outcome is a testament to the business’ industry-leading solutions and most notably to the outstanding contributions of our employees," says McAfee CEO Peter Leav. “This transaction will allow McAfee to singularly focus on our consumer business and to accelerate our strategy to be a leader in personal security for consumers.”McAfee shares are up 10.9% pre-market to $23.50.Press release.

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McAfee stock surges on $4 billion divestment of enterprise business