Advent-led Consortium’s $14 Billion Acquisition of McAfee

Ropes & Gray represented McAfee, Fried, Frank, Harris, Shriver & Jacobson and Kirkland & Ellis advised Investor Group in the transaction. Weil, Gotshal & Manges advised Advent International and CPP Investments. Davis Polk advised the joint lead arrangers on the financing.

McAfee Corp., a global leader in online protection, closed its agreement to be acquired by an investor group led by Advent International Corporation and Permira Advisers LLC, Crosspoint Capital Partners, Canada Pension Plan Investment Board, GIC Private Limited, and a wholly owned subsidiary of the Abu Dhabi Investment Authority. 

As part of the transaction, the Investor Group will acquire all outstanding shares of McAfee common stock for $26.00 per share in an all-cash transaction valued at approximately $12 billion on an equity value basis, and over $14 billion on an enterprise value basis after giving effect to repayment of McAfee debt. The purchase price represents a premium of approximately 22.6% over McAfee’s closing share price of $21.21 on November 4, 2021, the last trading day prior to media reports regarding a potential sale of McAfee.

A $6.66 billion senior secured first-lien term loan facility, a $1 billion senior secured revolving credit facility and a $2.32 billion senior unsecured bridge facility are provided to the consortium to finance its acquisition of McAfee Corp. 

The debt financing for the transaction is being provided by JPMorgan Chase Bank, N.A., Bank of America, N.A., BofA Securities, Inc., Credit Suisse AG, Cayman Islands Branch, Credit Suisse Loan Funding LLC, Barclays Bank PLC, Citigroup Global Markets Inc., HSBC Securities (USA) Inc., HSBC Bank USA, National Association, Royal Bank of Canada, RBC Capital Markets LLC, CPPIB Credit Investments III Inc., UBS AG, Stamford Branch, UBS Securities LLC and PSP Investments Credit II USA LLC, and the preferred equity financing is being arranged and provided by PSP Investments Credit USA LLC and investment funds managed by Neuberger Berman.

McAfee Corp. (Nasdaq: MCFE) is a global leader in online protection for consumers. Focused on protecting people, not just devices, McAfee consumer solutions adapt to users’ needs in an always online world, empowering them to live securely through integrated, intuitive solutions that protect their families and communities with the right security at the right moment.

Founded in 1984, Advent International is one of the largest and most experienced global private equity investors. The firm has invested in over 380 private equity investments across 42 countries, and as of June 30, 2021, had $81 billion in assets under management.

Permira backs growth at scale. Founded in 1985, the firm advises funds with total committed capital of approximately US$50bn (€44bn) and makes long-term majority and minority growth investments. 

Crosspoint Capital Partners is a private equity investment firm focused on the cybersecurity, privacy and infrastructure software markets. 

Canada Pension Plan Investment Board (CPP Investments™) is a professional investment management organization that manages the Fund in the best interest of the more than 20 million contributors and beneficiaries of the Canada Pension Plan. 

TPG is a leading global alternative asset firm founded in San Francisco in 1992 with $108 billion of assets under management and investment and operational teams in 12 offices globally. 

The Ropes & Gray team representing McAfee was led by private equity and M&A partners Michael Roh (Boston), Paul Scrivano and Howard Glazer (both of San Francisco), Chris Comeau (Boston) and Kate Withers (New York), and included commercial & securities litigation partner Daniel McCaughey (Boston), tax partner Adam Greenwood (New York), litigation & enforcement partners Ama Adams and Maria Calvet (both of Washington, D.C.), Randall Bodner (Boston) and Ruchit Patel (London), antitrust partner Jonathan Klarfeld (Washington, D.C.), leveraged finance partners Arek Maczka and Jay Kim (both of New York), employment, executive compensation & benefits partners Megan Bisk and Kyle Higley (both of Boston), IP transactions partner Megan Baca (Silicon Valley), mergers & acquisitions counsel Thomas Burke (New York), real estate counsel Owen LaFreniere (New York), litigation & enforcement counsel Gregory Demers and Deidre Johnson (both of Boston), data, privacy & cybersecurity partner Edward McNicholas (Washington, D.C.), and mergers & acquisitions partner Thomas Holden (San Francisco).

The Kirkland team was led by debt finance partners Jay Ptashek (Picture) and Yuli Wang and associates Conor O’Miuri and Spencer Welch, capital markets partners Michael Kim and Joshua Korff, and tax partners Jared Rusman and Steven Ort.  

The Fried Frank deal team was led by corporate partners Amber Banks (Meek) and Brian T. Mangino, and included corporate partners Michael T. Gershberg and J. Christian Nahr; antitrust and competition partners Nathaniel L. Asker and Tobias Caspary; executive compensation & ERISA partner Jason R. Ertel; intellectual property and technology partner Amir R. Ghavi; litigation partners Michael J. Anstett and Joshua D. Roth; tax partner Alan S. Kaden; antitrust and competition special counsel Aleksandr B. Livshits; corporate real estate special counsel Melissa A. Meyrowitz; litigation special counsel Michael A. Kleinman; corporate associates Alexander G. Feldsott, Gina Gazivoda, Nathaniel Goldfinger, Thomas C. Katsiotas, and Tyler C. Winters; antitrust and competition associates Romain Girard, Annalie Grogan, and Neda Moussavi; executive compensation & ERISA associates Adam P. Cohen and Matthew Rutchik; intellectual property and technology associates Justin P. Charles and Kimberly Mihovics; litigation associates Katelyn James and Patrick Robichaud; restructuring and insolvency associate Sari J. Rosenfeld; tax associate Shane C. Hoffmann; corporate law clerk JP McElroy; antitrust and competition law clerk William A. Reed; executive compensation & ERISA law clerk Eden Lichaw; and tax law clerk Kelsey B. Massey.

The Weil team advising Advent International was led by Private Equity partner Marilyn French Shaw.

The Weil team advising CPP Investments was led by Private Equity partner Craig Adas and included Private Equity counsel Timothy Burns and Private Equity associates Harris Ahmad and Katherine Adams (Not Yet Admitted in New York).

The Davis Polk finance team included partners James A. Florack and Jason Kyrwood, counsel Randy Dorf and associates Christopher Nairn-Kim and Adela Troconis. Partner Derek Dostal provided capital markets advice. 

Involved fees earner: Randy Dorf – Davis Polk & Wardwell; Derek Dostal – Davis Polk & Wardwell; James Florack – Davis Polk & Wardwell; Jason Kyrwood – Davis Polk & Wardwell; Christopher Nairn – Davis Polk & Wardwell; Adela Troconis – Davis Polk & Wardwell; Michael Anstett – Fried Frank Harris Shriver & Jacobson; Nathaniel Asker – Fried Frank Harris Shriver & Jacobson; Amber Banks (Meek) – Fried Frank Harris Shriver & Jacobson; Tobias Caspary – Fried Frank Harris Shriver & Jacobson; Justin Charles – Fried Frank Harris Shriver & Jacobson; Adam P. Cohen – Fried Frank Harris Shriver & Jacobson; Jason Ertel – Fried Frank Harris Shriver & Jacobson; Alexander Feldsott – Fried Frank Harris Shriver & Jacobson; Gina Gazivoda – Fried Frank Harris Shriver & Jacobson; Michael Gershberg – Fried Frank Harris Shriver & Jacobson; Amir Ghavi – Fried Frank Harris Shriver & Jacobson; Romain Girard – Fried Frank Harris Shriver & Jacobson; Nathaniel Goldfinger – Fried Frank Harris Shriver & Jacobson; Annalie Grogan – Fried Frank Harris Shriver & Jacobson; Shane Hoffmann – Fried Frank Harris Shriver & Jacobson; Katelyn James – Fried Frank Harris Shriver & Jacobson; Alan Kaden – Fried Frank Harris Shriver & Jacobson; Thomas Katsiotas – Fried Frank Harris Shriver & Jacobson; Michael Kleinman – Fried Frank Harris Shriver & Jacobson; Aleksandr Livshits – Fried Frank Harris Shriver & Jacobson; Brian Mangino – Fried Frank Harris Shriver & Jacobson; Melissa Meyrowitz – Fried Frank Harris Shriver & Jacobson; Kimberly Mihovics – Fried Frank Harris Shriver & Jacobson; Neda Moussavi – Fried Frank Harris Shriver & Jacobson; Christian Nahr – Fried Frank Harris Shriver & Jacobson; Patrick Robichaud – Fried Frank Harris Shriver & Jacobson; Sari Rosenfeld – Fried Frank Harris Shriver & Jacobson; Joshua Roth – Fried Frank Harris Shriver & Jacobson; Matthew Rutchik – Fried Frank Harris Shriver & Jacobson; Tyler Winters – Fried Frank Harris Shriver & Jacobson; Michael Kim – Kirkland & Ellis; Joshua Korff – Kirkland & Ellis; Conor O’Muiri – Kirkland & Ellis; Steven Ort – Kirkland & Ellis; Jay Ptashek – Kirkland & Ellis; Jared Rusman – Kirkland & Ellis; Yuli Wang – Kirkland & Ellis; Ama Adams – Ropes & Gray; Megan Baca – Ropes & Gray; Megan Bisk – Ropes & Gray; Randall Bodner – Ropes & Gray; Thomas Burke – Ropes & Gray; Christopher Comeau – Ropes & Gray; Gregory Demers – Ropes & Gray; Howard Glazer – Ropes & Gray; María González Calvet – Ropes & Gray; Adam Greenwood – Ropes & Gray; Thomas Holden – Ropes & Gray; Deidre Johnson – Ropes & Gray; Jay Kim – Ropes & Gray; Jonathan Klarfeld – Ropes & Gray; Owen LaFreniere – Ropes & Gray; Arek Maczka – Ropes & Gray; Daniel McCaughey – Ropes & Gray; Edward McNicholas – Ropes & Gray; Ruchit Patel – Ropes & Gray; Michael Roh – Ropes & Gray; Paul Scrivano – Ropes & Gray; Kate Withers – Ropes & Gray; Katherine Adams – Weil, Gotshal & Manges; Craig Adas – Weil, Gotshal & Manges; Harris Ahmad – Weil, Gotshal & Manges; Timothy Burns – Weil, Gotshal & Manges; Marilyn French Shaw – Weil, Gotshal & Manges;

Law Firms: Davis Polk & Wardwell; Fried Frank Harris Shriver & Jacobson; Kirkland & Ellis; Ropes & Gray; Weil, Gotshal & Manges;

Clients: Advent International; Bank of America; Bank of America Securities; Barclays Bank; Canada Pension Plan Investment Board; Citigroup Global Markets Ltd; CPPIB Credit Investments; Credit Suisse AG Cayman Islands Branch; Credit Suisse Loan Funding LLC; Crosspoint Capital Partners; Hsbc Bank plc; HSBC Securities (USA) Inc.; JP Morgan Chase & Co.; McAfee; Neuberger Berman; Permira; PSP Investments Credit II USA LLC; RBC Capital Markets; Royal Bank of Canada; TPG ; UBS AG; UBS Securities LLC;