McAfee isn’t like most tech IPOs this year. It wasn’t founded in the 2000s and declared a unicorn before making its stock market debut. In fact, it’s gone public before. 

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The online security company was founded in 1987 and went public prior to being acquired by Intel in 2011 and then spun out on its own again in 2017. 

TPG acquired a majority stake in the company and Thoma Bravo also invested in it. So as the company goes public for the second time, some familiar names pop up as the biggest players in the IPO, which raised $740 million Thursday.

The Players

TPG Funds

In 2017, TPG invested in McAfee after it spun out from Intel. Chicago-based Thoma Bravo also joined in on the deal as a minority investor through an agreement with TPG, and Intel kept a 49 percent stake in the new company, according to a 2017 statement from TPG. 

San Francisco-based TPG owns 55.7 percent of McAfee’s Class A common stock, after giving effect to the reorganization transactions and after the IPO. The 124,520,762 Class A shares at the $20 IPO price comes out to $2.5 billion. TPG also owns 57,933,633 shares of Class B common stock, after giving effect to the reorganization and after the IPO, or 21.9 percent. At $20 per share, that comes out to nearly $1.2 billion

Intel Americas Inc.

Intel acquired McAfee and rebranded it to Intel Security before it was spun out again as McAfee. Intel kept a 49 percent stake in the company, with most of its stock being Class B shares. Intel owns 5,696,831 shares of Class A common stock, after giving effect to the reorganization transactions and after the IPO. That comes out to nearly $114 million. It also owns 180,222,000 shares of Class B common stock, after giving effect to the reorganization and after the IPO, or 68.1 percent. That comes out to more than $3.6 billion.

Thoma Bravo Funds

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Thoma Bravo also invested in McAfee when TPG invested in the company. It owns 21,216,304 shares of Class A Common Stock and 21,900,294 shares of Class B common stock, after giving effect to the reorganization transactions and after the IPO. That comes out to more than $424 million and more than $438 million, respectively.

Snowlake Investment

Snowlake owns 25,869,966 shares of Class A common stock, after giving effect to the reorganization transactions and after the IPO, or 15.6 percent. At the IPO price of $20 apiece, Snowlake’s stake in the company ends up at more than $517 million.

McAfee stands out in another way among this year’s tech IPOs. While many have seen their stock surge on their first day of trading, McAfee’s did not. After the company priced its shares at $20 apiece, it had a less-than-stellar first day of trading. Its stock opened at $18.60, below its IPO price, and closed at $18.70.

Illustration: Dom Guzman



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