Cyber security company McAfee Corp raises $620 million in US IPO

Cyber security firm McAfee Corp sold shares in its initial public offering (IPO) on Wednesday at $20 a piece, within its target range, to raise $620 million

Topics
McAfee | cyber security | IPOs

Reuters 

IPO
Illustration: Ajay Mohanty

(Reuters) - firm Corp sold shares in its initial public offering (IPO) on Wednesday at $20 a piece, within its target range, to raise $620 million.

The IPO valued McAfee, which is backed by U.S. private equity firms TPG and Thoma Bravo, at $8.6 billion based on total outstanding shares. The company also had $4.8 billion in debt as of the end of June.

had aimed to sell 37 million shares at a target price range of $19-$22 per share. declined to comment.

TPG acquired a majority stake in McAfee from Intel Corp in 2016 in a deal which valued the company at $4.2 billion, including debt. Thoma Bravo took a minority stake in McAfee in 2017.

In the last few years, McAfee has grown its main software business, which focuses on consumers, through price increases, new partner programs and good retention rates.

McAfee earlier this year hired ex-BMC Software CEO Peter Leav as its new chief executive to replace Chris Young, who created the company in its current form by carving it out of Intel.

McAfee has said its revenue in 2019 was $2.6 billion with a net loss of $236 million. In the first half of 2020, the company said revenue reached $1.4 billion, while net income was $31 million.

McAfee said it plans use to use a portion of the IPO proceeds to pay down part of its outstanding debt.

Shares in McAfee are due to begin trading on the Nasdaq on Thursday under the symbol "MCFE."

Morgan Stanley, Goldman Sachs, TPG Capital BD, BofA Securities and Citigroup are the lead underwriters for the offering.

 

(Reporting by Chibuike Oguh in New York; Editing by Christopher Cushing)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

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Read our full coverage on McAfee
First Published: Thu, October 22 2020. 08:13 IST
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