Santa Clara (ip-192.com): In an unexpected move, Intel announced that it will buy security technology firm McAfee for $7.68 billion. The purchase represents a premium of almost 60 percent, based on the closing price of McAfee shares on Wednesday. Intel said that it will pay $48 per share in cash. The agreement has already been approved by the boards of both companies.
"With the rapid expansion of growth across a vast array of Internet-connected devices, more and more of the elements of our lives have moved online," said Paul Otellini, Intel president and CEO in a press release. "In the past, energy-efficient performance and connectivity have defined computing requirements. Looking forward, security will join those as a third pillar of what people demand from all computing experiences.
Intel said that it will operate McAfee as a wholly owned subsidiary. The acquisition will help the world's largest semiconductor chip maker to elevate its focus on security, which is now a fundamental component of online computing.
"Hardware-enhanced security will lead to breakthroughs in effectively countering the increasingly sophisticated threats of today and tomorrow," said Renée James, Intel senior vice president, and general manager of the group. "This acquisition is consistent with our software and services strategy to deliver an outstanding computing experience in fast-growing business areas, especially around the move to wireless mobility. McAfee is the next step in this strategy, and the right security partner for us. Our current work together has impressive prospects, and we look forward to introducing a product from our strategic partnership next year."
With the purchase, Intel is becoming a major player in the security sector that is expected to grow rapidly over the next years. In 2009, McAfee reported about $2 billion in revenue.
Recent Comments