McAfee

Business in Russia

White Paper: McAfee Russia

Performance indicators

2020: Revenue growth by 10%, up to $2.91 billion, loss - $289 million

McAfee according to the results of work in 2020, it registered revenue in the amount of $2.91 billion against $2.64 billion in 2019. Thus, sales increased by 10%. For the company, this is the first financial statement after entering the exchange in October 2020.

In the segment of consumer antivirus solutions, McAfee earned $1.56 billion in 2020, which is 20% more compared to the previous year. The implementation of enterprise-level software rose by 1% to $1.35 billion.

Net McAfee losses in 2020 increased to $289 million from $236 million in 2019.

McAfee Chief Financial Officer Venkat Bhamidipati said that registered results "across the business exceeded expectations due to properly built work and increased demand for cybersecurity solutions."

In 2020, McAfee remains unprofitable

He noted that the company watched "steady demand in a large, critical and growing market for consumer IB solutions." In the corporate segment, McAfee was able to increase both revenue and profits, focusing on working with key corporate and state clients and prioritizing investments and rational expenses, Venkat Bhamidipati added. Key customers accounted for more than 80% of McAfee revenue, the company's presentation said.

By the end of 2020, McAfee had about 18 million users of the company's products, compared to 15.2 million a year earlier. The growth of this audience was partly influenced by the pandemic of the COVID-19 coronavirus, due to which people began to work and study more often from home, as a result of which they increased the purchase of computers and software for their cyber protection.

It follows from the reporting that by the end of December 2020, McAfee had accumulated cash and cash equivalents in the amount of $231 million. Cash flow from core activities for the year increased by 53% and reached $760 million.^[1]

History

2022: Creation of Skyhigh Securit based on McAfee assets

In mid-March 2022, Symphony Technology Group (STG) launched a new portfolio company, Skyhigh Security, which includes services that were previously available under McAfee Enterprise SSE. More details here.

2021

Group of investment funds bought McAfee for $14 billion

On November 8, 2021, the sale of McAfee for $14 billion was announced. The manufacturer antiviruses is bought by a group of investment funds led by Advent International Permira Advisers. Buyers also included Crosspoint Capital Partners, Canada Pension Plan Investment Board, GIC Private Ltd and a subsidiary of Abu Dhabi Investment Authority.

Under the terms of the agreement, McAfee shareholders will receive $26 for each security owned by them, which is almost 23% more than the rate of quotes on November 4, 2021 - on the last trading day before the media reported a potential sale of McAfee. The purchase of McAfee will be fully paid with cash (without attracting shares). The deal is planned to be closed in the first half of 2022.

After a group of investors redeems all shares of the McAfee and pays its debts, the antivirus developer will become a completely private company. For McAfee, this is the second delisting.

The McAfee believes that returning the status of a non-public company will help it develop its growth strategy. A group of investors buying McAfee will provide the company with "financial and operational resources to further expand the range of consumer solutions and earn on the rapid growth of consumer demand for digital security services," the press release said.

Today's announcement signals continued growth and new opportunities for McAfee, says TPG Chief Executive Officer John Winkelrid. - Over the past four years, the company has expanded its product portfolio, improved its strategy for bringing products to market and implemented strategic mergers and acquisitions, including the sale of its corporate business.

By November 8, 2021, the shares of the computer protection software manufacturer rose by 55% compared to the same period in 2020.^[2]

Completion of the sale of McAfee Enterprise to the venture capital firm STG

On July 28, 2021, the venture capital company Symphony Technology Group (STG) informed TAdviser that the consortium headed by it closed a deal to acquire the McAfee 's corporate business protection unit. Now McAfee Enterprise, a cybersecurity representative for more than 30 years, will focus entirely on protecting organizations and enterprises.

McAfee has completed the sale of the Corporate Information Security Department
Photo source: solidbranding.com

Шаблон:Quote 'author = said William Chisholm, managing partner of STG.

The focus on corporate cybersecurity is especially important when companies are faced with increasingly complex attacks and malicious techniques, which have become more difficult to calculate using traditional tools.

We have always focused on the interests of customers, creating solutions to ensure their cybersecurity. The special needs and challenges of companies in the field of cybersecurity are given increased attention, so we direct our strategic efforts, resources and investments to the development and provision of solutions for our corporate clients, commercial and government organizations, noted Lynne Doherty, executive vice president of global sales and marketing for McAfee Enterprise.

The primary goal of McAfee Enterprise is to meet customer needs through a portfolio of solutions that are globally available. Despite the next chapter in the development of our company, we remain a faithful advisor on information security for companies around the world, commented on Evgeny Garbul, regional director of McAfee Enterprise in Russia and Central Asia.

With the completion of the deal, McAfee Enterprise is awaiting rebranding in the coming months.

Sale of Corporate Information Protection Unit to STG Venture Firm

McAfee Corporation announced the sale of its corporate information protection unit to the venture capital firm Symphony Technology Group. This was announced on March 8, 2021 by Business Wire.

Inglourious end: McAfee sells corporate information security
Source photo: officelovin.com

The decision looks quite unexpected for a number of reasons. Back in early 2021, the company released new products focused on the corporate sector, in particular, advanced detection and response to cyber incidents (XDR) tools for local cloudy and resources. In 2020, McAfee also introduced a cloud system SIEM (network resource event management system), also focused on the corporate sector. In general, after returning to its independence in 2017, the company invested intensively in corporate-class development. According to her, the corporate security division is a "trusted partner" for 86% of Fortune 100 companies. In 2020, the net revenue of this division amounted to 1.3 billion. dollars

However, the brand McAfee much stronger in the consumer sector than in the corporate sector. According to the results of the fourth quarter of 2020, the growth rate of the consumer business of McAfee amounted to^[3] 23% compared to the same period in 2020. Corporate business grew by only 5%.

The results of fiscal 2020 as a whole are even more indicative: the consumer business McAfee brought in $1.6 billion and grew by 20% compared to 2019; enterprise business growth was only 1%.

The dynamics of growth very eloquently demonstrate the prospects of an asset, and in such situations, commercial companies have the choice of, in fact, two options: increase investment in the hope of accelerating growth, or get rid of the asset until it has finally become an encumbrance. McAfee Apparently, it is forced to optimize its activities, and therefore the asset with weak dynamics was withdrawn. The sharply increased demand in 2020 for everything related to information security led to a corresponding aggravation of competition in this market. In such conditions, it is more logical to focus efforts on more promising areas of activity. says Dmitry Gvozdev, CEO of Information Technologies of the Future.

In January 2021, McAfee, according to some reports^[4]Reduced about two hundred employees in the United States and Israel and closed its development center in Tel Aviv.

In general, McAfee has a very stormy corporate history. One of the oldest information security development firms, the company remained independent from 1987 to 2011, when Intel bought it. In 2014, it was renamed the Intel Security Group, but three years later, Intel entered into a partnership with the investment firm TPG Capital, in which Intel Security Group again stood out as an independent business - and regained its McAfee brand (Intel, however, had 49% share).

In October 2020, McAfee returned to the exchange after almost a decade of absence, again turning into a public company. The starting price for one security was $20; by December 2020, it had dropped to $15.5, but as of March 2021, obviously, amid news of the sale of the corporate unit, it grew to almost $24 per share.

The buyer of the asset is a private investment company Symphony Technology Group. In 2020, she acted as one of the buyers of another business related to information security - RSA Security, one of the suppliers of security systems and encryption of network connections. Since 2006, RSA has been a division of EMC Corporation, and then Dell, but in 2020, a consortium led by Symphony bought it for $2.1 billion, again turning it into an independent company.

The acquisition of the corporate business is McAfee due to be completed by the end of 2021 - provided that it is approved by all supervisory authorities^[5].

2020

Return to Nasdaq Exchange

On October 22, 2020, McAfee again became a public company, placing its shares on the Nasdaq exchange under the ticker MCFE. As part of the IPO, the antivirus manufacturer sells about 37 million securities at $20 (the price corridor was set at $19-21) to raise $740 million.

On the first day of trading, McAfee quotes sank by 6.5%, and market capitalization fell below $8 billion, while at the time of trade, the figure was measured at $8.6 billion.

The value of shares McAfee October 22, 2020 did not rise above $19.5 during trading. At the opening of the market, the price was $18.6. The minimum indicator achieved at a certain moment of trading was $18.29.

McAfee shifted its shares to Nasdaq

Investment bankimorgan Stanley, Goldman Sachs, TPG Capital BD, BofA Securities and Citigroup became the leading underwriters of the carried-out IPO.

According to Barron's, long-term receivables McAfee by June 27, 2020 amounted to about $4.7 billion. Debt-ridden companies are not unusual, but $4.7 billion is a high figure, and although McAfee may be a little profitable, investors will definitely pay attention to the high debt burden, the publication notes.

The McAfee claims that by October 2020, 86% of the largest Fortune 100 companies, 78% from Fortune 500 and 61% from Global 2000 use the vendor's decisions. At the same time, 45% of the largest customers in terms of annual contract volumes are government organizations.

According to the analytical company OPSWAT, by mid-2020, the McAfee product was installed on 7.57% of devices running Windows operating systems. This makes McAfee the sixth most popular antivirus manufacturer - Symantec, AVAST, ESET, Webroot and Malwarebytes are ahead of the company.^[6]

Purchase of the IB company of NSA veterans Light Point Security

At the end of February 2020, McAfee announced the acquisition of Light Point Security at the RSA conference in San Francisco. The value of the company's transaction did not disclose. More details here.

Peter Liv is the new CEO McAfee

In mid-January 2020, McAfee announced the appointment of Peter Liv as CEO instead of Chris Young. More details here.

2019

Purchase of application protection software developer via containers NanoSec

In August 2019, McAfee announced the purchase of a developer ON to protect applications through containers. NanoSec More. here

Russian-speaking hackers sell Symantec, McAfee and Trend Micro antivirus sources for $300 thousand.

In mid-May 2019, the American company Advanced Intelligence (AdvIntel), specializing in intelligence of information security threats, reported hacking the servers of three antivirus manufacturers: Trend Micro, Symantec and McAfee. Behind this cybercrime, according to experts, is the Russian-language hacker group Fxmsp, which began to sell the source codes of antivirus products on shadow websites, asking for $300 thousand for them. More details here.

2017: Return of the McAfee brand to the market

On April 4, 2017, the McAfee brand officially returned to the antivirus market. The company will focus on new technologies, including artificial intelligence.

Intel closed a deal to sell a majority stake (51%) of Intel Security, created on the basis of McAfee, an investment firm TPG Capital, purchased for $7.7 billion in 2011. The value of the transaction amounted to $4.2 billion.

Company logo McAfee

TPG will pay most of this amount (about $3.1 billion) directly to Intel, and invest the rest in the development of the acquired business.

Intel Security has been renamed to McAfee again. 49% of the company, which by the beginning of April 2017 employs about 8 thousand people, will remain with Intel. Intel's senior vice president and head of the former Intel Security division, Chris Young, became the head of the McAfee.

According to him, gaining McAfee independence was an important milestone in the company's path to leadership in the security technology market. cyber security

This is the beginning of how we build the trust of our customers, deliver our solutions, and work closely with our partners through the channel. Now we are doing all this in the context of an independent McAfee again - Intel Security is no longer there, "Young said.

He believes that after the McAfee returns to the market, the company's partners can expect a new wave of innovations from the manufacturer in such areas as cloud security, data centers, information and workplace protection.

McAfee will continue to focus on threat detection solutions, but the company will go beyond traditional signatures. The focus will be on machine learning, which will help detect attacks as they appear, and not when they have already hit the company.^[7]

2016

TPG bought 51% of Intel Security

On September 8, 2016, Intel announced the sale of a 51% stake in Intel Security to TPG, an American investment company. The joint venture will be called McAfee. Intel left itself 49%.

Company logo during this period

As a result of the transaction, a joint venture called McAfee will be created, it will become engaged in information security and will actually revive the antivirus brand McAfee. After the rebranding in 2014, when Intel absorbed McAfee in 2011, this name disappeared^[8].

Intel will give the buyer a 51% stake in McAfee, leaving itself 49%. The transaction amount is $3.1 billion. TPG will invest $1.1 billion in the authorized capital of the joint venture. At the time of the transaction, Intel Security's market value is estimated at $4.2 billion.

The identity of McAfee CEO is already known - Chris Young, general manager of Intel Security.

FT: Intel is thinking about selling McAfee

The American corporation Intel is considering the sale of its McAfee division, which develops antivirus, software writes Financial Times^[9]

According to people close to the discussion, Intel discussed with bankers the further fate of the cybersecurity unit. However, the corporation refused to publicly comment on the planning of one of the largest transactions in the industry.

Intel bought McAfee in 2011 for $7.7 billion.

According to the publication, investors are increasingly interested in purchases in the field of cybersecurity due to the fact that companies have become more concerned about protecting their business from cyber attacks. It is noted that a number of such firms are ready to unite to acquire McAfee.

2015: Intel sells firewall business

• On February 25, 2015, Michael DeCesare, former president of McAfee, left the company, becoming chief executive officer of ForeScout Technologies. He was the last in a series of senior executives to leave Intel Security by then. Among them were Director of Technology Michael Fey and Senior Vice President in the United States Steve Tchejeyan, both of whom moved to Blue Coat Systems.
• On October 27, 2015, Intel Security is adopting a new strategy aimed at the "full life cycle of repelling cyber threats," including means of protection, detection and elimination of the consequences of attacks. The new strategy involves expanding the functionality of products covering client devices and the cloud, as well as a greater focus on cyber threat research, analytics and integration of third-party products with their own Data Exchange Layer (DXL) technology and central administration system ePolicy Orchestrator (ePO).
• In October 2015 - Intel Security begins to sell and close product lines that do not fit into its new strategy. About ten products, including services of protection of e-mail MX Logic were in total liquidated, and the firewall of the next generation and all business of McAfee Firewall Enterprise - are sold to the Forcepoint company (before Raytheon'Websense).

In early November 2015, Intel announced the sale of its firewall business to Data Breach Protection Technology Manufacturer Websense, which is owned by Raytheon. The management of the processor giant notified partners about this transaction by sending a message that was at the disposal of the CRN publication.

Under the terms of the agreement with Raytheon'Websense, Intel Security sells the divisions McAfee Next-Generation Firewall (NGFW) and McAfee Firewall Enterprise, which were formed as a result of the purchase of Stonesoft and Sidewinder by McAfee in 2013 and 2008, respectively.

Intel Security sells McAfee Next-Generation Firewall and McAfee Firewall Enterprise

The value of the deal between Intel Security and Raytheon'Websense, which is scheduled to close before the end of 2015, is not disclosed. An Intel Security representative confirmed to the publication the conclusion of a "final agreement" with Raytheon'Websense regarding the transfer of assets to NGFW and Firewall Enterprise, but refrained from further comment.

By buying part of Intel's IB business, Raytheon's Website hopes to expand the hybrid cloud capabilities of Triton's security platform.   300 new employees will be involved in the work on products based on it.

As for Intel Security,  the sale of McAfee Next-Generation Firewall and Firewall Enterprise is part  of a move away from  product lines that do not  fit  into the company's new information security business strategy. Shortly before the announcement of the Raytheon 'Website deal, Intel Security announced the abolition of several series of products related to email protection, mobile security and cloud work (SaaS).

According to Lisa Matherly, head of global partner programs at Intel Security, getting rid of the firewall business does not mean leaving the company from the IS market.

"Our network security products, including the leading IPS (Intrusion Prevention System), remain key elements of Intel Security's product portfolio. At the same time, we understand that meeting the current demand for world-class firewall technologies is still crucial for many partners, so that the integration of these products with major Intel Security technologies will continue, "said Maserli

A message to Intel Security partners also said that due to changes in the company's IB business, there will be new changes in the partner program, which was last updated in July 2015.^[10]

2014: Rename to Intel Security. Chris Young Head of Company

January 2014 - Intel renamed the McAfee Intel Security, although the brand itself has been retained and the former McAfee continues to operate as a separate subsidiary.

On October 1, 2014, Chris Young, who moved from Cisco, was appointed senior vice president and CEO of Intel Security, leading this business.

2013: Rejection of the McAfee brand

Three years after the purchase of the company McAfee for $7.68 billion. Intel decided to abolish this brand. It was announced that starting in January 2014, the brand will disappear from all new Intel products in IT security^[11].

Speaking at the Consumer Electronics Show on Monday (CES), Intel CEO Brian Krzanich said that the company's products in the IT security segment will now be called Intel Security. After announcing the rebranding, Krzanich briefly introduced a number of new products for the consumer market.

McAfee will continue to operate as a wholly owned subsidiary of Intel, and it will be about a year before the brand McAfee completely disappears from circulation, a company spokesman said. The new Intel Security brand will mark all Intel IT security products and services, including the current McAfee portfolio. The McAfee logo - the "red shield" - will remain, the representative said.

John McAfee, who founded his firm in 1987, has repeatedly made headlines in previous years, although he left the company back in 1994. Partners followed his madness with interest, invariably emphasizing that this does not affect the brand's authority.

2011

On July 12, 2011 McAfee declared that the president and the general manager Dave DeUolt will leave the company, and Michael DeCesare, the executive vice president for global operations, and Todd Gebhart, the executive vice president and the CEO of business of consumer, mobile products and decisions for SMB, will undertake functions of soprezident.

2010

Revenue growth by 7% to $2.1 billion

Revenue - $2.1 billion with an increase of about 7%.

Intel acquires McAfee for $7.68 billion

In August 2010, Intel agreed to acquire McAfee. The transaction amount is $7.68 billion. For each share, the McAfee corporation offered 60% more than the value of securities at the time of the close of trading on August 18. After the announcement of the deal, the share rate of McAfee jumped 48% to $47.42 apiece.

According to Intel, modern software cannot protect against computer threats enough when using mobile phones, TVs, ATMs and other devices connected to the global network. McAfee will have to solve this problem. Upon completion of the transaction, McAfee will be part of the Intel Software and Services Group, a platform and software division. The head of this unit is Renee James.

The deal received approval from the boards of directors of both companies. When it is planned to be completed, it is not reported, but for this, the parties will have to obtain the consent of the shareholders of the McAfee, located, like Intel, in Santa Clara, California, and regulators.

2009: Revenue $2 billion

Revenue McAfee according to the results of 2009 amounted to about $2 billion. According to Gartner, in 2008, the vendor occupied the second largest share of the antivirus software market in terms of revenue (first place is Symantec, third - Trend Micro).

Company logo in 2009

2008: Second place in the global IB market with a share of 10.9%

2007

On March 5, 2007 Dave DeWalt, the former president and the general manager of Documentum is appointed the President and the general manager of McAfee.

2006: President and Chief Executive Officer dismissed for financial fraud

On October 11, 2006, McAfee President Kevin Weiss was fired, and Chief Manager George Samenuk announced that he was resigning after violations in the company's accounting records. Dale Fuller was appointed interim chief executive officer.

2004: Network Associates renamed McAfee

Network Associates announced that it is selling its non-profitable network administration and analysis product line Sniffer to private investment firms Silver Lake Partners and Texas Pacific Group and changes its name to McAfee.

Changes were introduced as part of a plan to reduce costs and increase sales and profits, and the company itself took aim exclusively at ON cyber security the related services^[12]

1997: McAfee Associates is part of Network Associates

The "original" McAfee Associates, founded by the legendary John McAfee, became one of four companies whose merger in 1997 resulted in Network Associates.

Links

• Official website of the company in Russia

Notes