Intel to Acquire McAfee for Approximately $7.8 Billion

With cyber threats rising day by day, Internet security has become a fundamental feature for online computing. Consequently, microprocessor giant Intel (News - Alert) has elevated the priority of security to be on par with its strategic focus areas in energy-efficient performance and Internet connectivity.

Because protection to a diverse online world requires a fundamentally new approach involving software, hardware and services, Intel Corp. ((www.intel.com) today entered into a definitive agreement to acquire security expert McAfee (News - Alert), Inc., through the purchase of all of the company’s common stock at $48 per share in cash. Hence, the total cash value for this acquisition is approximately $7.68 billion.

In the past, Intel has made a series of software related acquisitions, such as Wind River (News - Alert) and Havok, to pursue a deliberate strategy focused on leading companies in their industry delivering software that takes advantage of silicon. And now it is acquiring a leading security technology company.

Board of directors for both the companies have unanimously approved the deal, which is expected to close after McAfee shareholder approval, regulatory clearances and other customary conditions specified in the agreement.

As a result, McAfee will become a wholly-owned subsidiary of Intel, reporting into Intel’s Software and Services Group. The group is managed by Renée James, Intel senior vice president, and general manager of the group.

“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 statement. “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,” added Otellini.

“The addition of McAfee products and technologies into the Intel computing portfolio brings us incredibly talented people with a track record of delivering security innovations, products and services that the industry and consumers trust to make connecting to the Internet safer and more secure,” Otellini continued.

Similarly, McAfee’s president and CEO Dave DeWalt commented, “The cyber threat landscape has changed dramatically over the past few years, with millions of new threats appearing every month.” “We believe this acquisition will result in our ability to deliver a safer, more secure and trusted Internet-enabled device experience,” asserted  DeWalt.

McAfee, based in Santa Clara and founded in 1987, is the world’s largest dedicated security technology company with approximately $2 billion in revenue in 2009. With approximately 6,100 employees, McAfee’s products and technologies deliver secure solutions and services to consumers, enterprises and governments around the world and include a strong sales force that works with a variety of customers.

Home to two of the most innovative labs and research in the high-tech industry, Intel and McAfee will also jointly explore future product concepts to further strengthen security in the cloud network and myriad of computers and devices people use in their everyday lives.

Ashok Bindra is a veteran writer and editor with more than 25 years of editorial experience covering RF/wireless technologies, semiconductors and power electronics. To read more of his articles, please visit his columnist page.

Edited by Patrick Barnard