Today Intel has announced that it has entered into a definitive agreement to acquire McAfee. Intel got the developer of antivirus software by purchasing all of the company’s common stock at $48 per share. The total acquisition cost was of $7.68 billion. The deal, which was approved by both boards of directors, is expected to close as soon as it gains the approval of McAfee shareholders as well as meet the regulatory clearances and other customary conditions specified in the agreement.
According to Intel, McAfee will work as a wholly owned subsidiary and will be under the control of Intel’s Software and Services group. The acquisition goes to show that security has become an important part of online computing. Apparently Intel believes that today’s security approach doesn’t fully address the billions of new Internet-ready devices (including mobile devices, TVs, cars or ATM machines). In order to provide protection to users of these devices, companies have to come up with a new approach which includes software, hardware and services.
“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.
Throughout the last period Intel has made a series of software acquisitions, pursuing a deliberate strategy which is focused on leading companies in their industry which deliver software that takes advantage of silicon. The list includes gaming, visual computing, machine software, and now, with after the acquisition of MacAfee, security also. A couple of days ago Intel has also announced acquiring Texas Instruments’ cable modem product line. The purchase was said to enhance Intel’s focus on the cable industry.
Renée James, Intel senior vice president, and general manager of Software and Services Group believes that hardware-enhanced security may lead to breakthroughs in effectively countering threats in the present and future. The company is planning to make connecting to the Internet safer and more secure with the help of the ‘incredibly talented people’ of
McAfee. James also mentioned that Intel is looking forward to introduce a product from this strategic partnership sometime next year. McAfee, a company based in Santa Clara, which was founded in 1987, is the world’s largest security technology company. It recorded approximately $2 million in revenue last year and currently has 6,100 employees. The products and technologies the company has created deliver secure solutions and services to consumers, enterprises as well as governments around the world. With Intel, McAfee will work on product concepts which help strengthen security in the cloud network as well as the different types of computers and devices people now use to browse the Internet.
