Intel Corporation is set to acquire security and antivirus company McAfee Inc. for about $7.68 billion through the purchase of all the company’s common stock at $48 per share. The deal has been approved by both boards of directors, but won’t close until “after McAfee shareholder approval, regulatory clearances, and other customary conditions specified in the agreement.”
“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. 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.” — Paul Otellini, Intel president and CEO
McAfee, the world’s largest dedicated security technology company, will become a wholly owned subsidiary of Intel. They will report to Intel’s Software and Services Group, which is managed by Renée James, Intel senior vice president. McAfee has enjoyed double-digit, year-over-year growth and nearly 80 percent gross margins last year. They made about $2 billion in revenue in 2009. James explains why this is a good move for Intel, saying:
“Hardware-enhanced security will lead to breakthroughs in effectively countering the increasingly sophisticated threats of today and tomorrow. 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.”
This represents one in a series of purchases by Intel in a plan to influence companies that rely on silicon. These include gaming, visual computing, embedded device and machine software and now security. McAfee has also made recent acquisitions in a move into the smartphone market, which makes this an even more lucrative deal for Intel.
It remains to be seen whether this will cause problems in the future, with Intel manufacturing the very chips the McAfee software is made to protect. This could give Intel an unfair advantage over the competition.Category: News | Tags: acquistion, antivirus, Intel, mcafee, security