IT Pro is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more

McAfee files to go public in SEC submission

Nasdaq estimates that the deal may raise up to $2 billion

Cyber security giant McAfee has filed for an initial public offering (IPO) to list on the Nasdaq, citing $100 million (approximately £77.6 million) as a placeholder figure.

The decision to go public comes after a wave of software companies have rushed to file IPOs in order to raise cash, totalling approximately $12.8 billion (roughly £11.6 billion) so far, according to Bloomberg

McAfee has made the filing with the Securities and Exchange Commission (SEC) citing full-year revenues of $2.6 billion for 2019, and a $236 million let loss. For the half-year ending 27 June 2020, McAfee declared $1.4 billion in revenue and $31 million in net income. 

The $100 million figure for the public offering is a placeholder, with the number of shares, and their value, yet to be declared. A report on the Nasdaq website suggests the IPO value is a placeholder for a deal estimated to raise up to $2 billion. The company will list its shares on the Nasdaq under the ‘MCFE’ ticker symbol.

Several risk factors cited in the filing include the macroeconomic conditions, including the disruption caused by COVID-19, technological changes in McAfee’s markets, as well as the nature of McAfee’s methods of distribution. 

“We sell a significant portion of our solutions through third-party intermediaries such as affiliates, retailers, ecommerce, PC OEMs, and other distribution channel partners,” the filing said. “Three of our largest channel partners are Ingram Micro Inc., Arrow Electronics, Inc., and Tech Data Corporation, and accounted for 15%, 9%, and 8% of our net revenue.

“Sales by our channel partners may vary significantly from period to period. Our channel partners operations may also be negatively impacted by other effects the COVID-19 pandemic is having on the global economy, such as increased credit risk of end customers and the uncertain credit markets.”

McAfee was acquired by Intel ten years ago in a deal approximately $8 billion dollars, seen at the time as a huge surprise. The nature of the relationship shifted in 2017 when Intel sold its majority stake in McAfee, selling 51% of the company’s stake to TPG at a valuation of $4.2 billion. This means McAfee became an independent company once again.

Featured Resources

Activation playbook: Deliver data that powers impactful, game-changing campaigns

Bringing together data and technology to drive better business outcomes

Free Download

In unpredictable times, a data strategy is key

Data processes are crucial to guide decisions and drive business growth

Free Download

Achieving resiliency with Everything-as-a-Service (XAAS)

Transforming the enterprise IT landscape

Free Download

What is contextual analytics?

Creating more customer value in HR software applications

Free Download

Recommended

Senate report slams agencies for poor cyber security
cyber security

Senate report slams agencies for poor cyber security

3 Aug 2021
Most employees put their workplace at risk by taking cyber security shortcuts
cyber security

Most employees put their workplace at risk by taking cyber security shortcuts

27 Jul 2021
61% of organizations say improving security a top priority for 2021
cyber security

61% of organizations say improving security a top priority for 2021

29 Jun 2021
ProtectedBy.AI’s CodeLock blocks malware at source code level
software as a service (SaaS)

ProtectedBy.AI’s CodeLock blocks malware at source code level

9 Jun 2021

Most Popular

Open source packages with millions of installs hacked to harvest AWS credentials
hacking

Open source packages with millions of installs hacked to harvest AWS credentials

24 May 2022
Nvidia pauses hiring to help cope with inflation
Careers & training

Nvidia pauses hiring to help cope with inflation

23 May 2022
Europe's first autonomous petrol station opens in Lisbon
automation

Europe's first autonomous petrol station opens in Lisbon

23 May 2022