McAfee puts a virtual padlock on IT resources. The company sells network security products that protect computers, networks, and mobile devices. Its software and hardware are used to guard against viruses, spam, and spyware, as well as to manage data loss prevention, mobile security, host intrusion prevention, encryption, and e-mail security. McAfee gets a significant portion of its sales from follow-up service, support, and subscriptions to its software and managed services. The company sells directly and through resellers to corporations and consumers mainly in the US; its largest international market is Europe. In 2016 McAfee's parent Intel and TPG agreed to spin McAfee off as an independent company.
Change in Company Type
TPG, which will own 51% of the spinoff, and Intel, which will own the rest, positioned the move as making McAfee, which will include all of Intel's security assets, a stronger entity. The companies valued the spinoff at $4.2 billion. TPG will invest more than $1 billion to boost McAfee at it ventures out alone. Intel bought McAfee in 2011 for about $7.7 billion. The deal is expected to close in the second quarter of 2017.
The company's products span the detection and protection spectrum from PC systems for individual consumers to enterprise-grade network security offerings. McAfee's internal product development efforts have included the release of Web-based versions of many of its products, upgrading its consumer security software lines, and developing new complementary services such as its McAfee Online Backup data protection service.
Intel bought McAfee (for $7.6 billion) to expand its expertise in security products for mobile computing, ATMs, and Internet-connected devices, as well as to provide a broader package of secure hardware, software, and services to clients. McAfee became a wholly-owned subsidiary reporting to Intel's software and services group.
Sales and Marketing
Its products are sold directly to consumers and enterprises as well as through its network of strategic partners and resellers such as Dell, Lenovo, and Adobe. Trial versions of McAfee's consumer software often comes pre-installed on PCs manufactured by partners or bundled with other third-party software products. McAfee introduced LiveSafe in 2014. It's a security product is designed to protect all the devices in a household, from PCs and Macs to smartphones and tablets.
Intel has consolidated its security products into Intel Security, which includes McAfee products and Intel's hardware-based security portfolio. The unit offers security products for technologies from personal computers to the Internet of Things.
Mergers and Acquisitions
The company also used acquisitions to expand its product line, adding new technologies and capabilities that address the increasingly complex security threats that networks and computers face, particularly as use of mobile computing products increases.
McAfee bought enterprise firewall security firm Stonesoft (based in Finland) in mid-2013 for nearly $400 million. It plans to use the purchase to extend its leadership in network security.