Intel, one of the leading giants in the computer world, has announced that the company will be acquiring security firm McAfee for about $7.68 billion, making the price on the company’s common stock of about $48 per share. The acquisition marks the biggest deal of Intel in its 42 year history.
Santa Clara, California based McAfee will become a fully-owned subsidiary of Intel, and become a part of Intel’s Software and Services Group. The deal will close pending McAfee shareholder approval and regulatory clearance.
The acquisition underlines Intel’s bet on “hardware-enhanced security” and demonstrates that that security is a necessary component as the tech company’s reach expands to handle billions of new Internet-ready devices, such as mobile phones and computers, TVs, cars, medical devices and ATM machines.
Intel states it has raised the priority of security to the same level as energy-efficiency and Internet connectivity.
“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,” Intel CEO Paul Otellini said 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.”
In the past year McAfee has enjoyed double-digit growth, as well as large margins, to the tune of almost 80 percent gross. It counts about 6,100 employees in its ranks and managed to rake in $2 billion in revenue in 2009.
Intel’s Senior Vice President Renée James said in a statement:
“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.”
Analysts questioned the soundness of purchasing McAfee when Intel could have gotten many of the same technical gains by continuing the two companies’ partnership. Intel said it has been working closely with McAfee for the last year and a half to improve the security of both companies’ products.
McAfee has about 6,100 employees and $1.93 billion in revenue last year. Intel had 79,800 employees and $35.13 billion in revenue.
