Cybersecurity provider McAfee Corp (MCFE) announced an extension of its five-year agreement with electronics manufacturer ASUS this week. Asus is installing McAfee as a preinstalled software option on its laptops and PCs. This is positive news for the company’s investors.
As part of this agreement, McAfee will provide ASUS users with a preinstalled comprehensive security service. The service will provide data protection, cybersecurity advice, and the ability to choose from many cybersecurity options, along with introducing the McAfee ecosystem.
ASUS previously had a five-year contract with McAfee Corp (MCFE), and the contract has not only been extended but also expanded. That is, new tools have been added to it. Extending McAfee’s partnership for a second time sends a positive message to its stockholders.
McAfee’s core business is selling software and services directly and through distributors to OEMs. Around a quarter of revenue is generated by large distributors. Being part of an ASUS partnership strengthens McAfee’s brand and can bring new customers.
ASUS users can currently access two main tools from McAfee: a password manager and a browser with built-in protection from miners, ransomware, and dangerous web pages. It is a rapidly growing market as a more web-based business, and consumer activities emerge.
During yesterday’s trading, the McAfee Corp (MCFE) closed at $ 18.83, down 3.9%. The company’s market capitalization is $7.8 billion. There are 6850 McAfee employees on the company’s payroll.