Intel to acquire McAfee for US $7.68 billion

by CXOtoday Staff    Aug 19, 2010

IntelMcAfeeIntel Corporation is set to acquire McAfee, Inc. through the purchase of all of the company’s common stock at US $48 per share in cash, for approximately US $7.68 billion. As a result of this acquisition, McAfee will become a wholly-owned subsidiary of Intel, reporting into Intel’s Software and Services Group. This group is managed by Renee James, Intel senior vice president and its general manager.

“Hardware-enhanced security will lead to breakthroughs in effectively countering the increasingly sophisticated threats of today and tomorrow,” said James. “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.” According to James, Intel may even introduce a joint product as soon as next year.

Intel and McAfee are apparently going to jointly explore future product concepts to strengthen security in the cloud network, computers and devices people use in their everyday lives. “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 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.”

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

Intel has made a series of acquisitions in gaming, visual computing, embedded device and machine software — adding to security to its fold. On a GAAP basis, Intel expects its earnings to dip in the first year of operations and flatten in the second year.