Intel to acquire McAfee for $7.68B

Intel will acquire security software tools supplier McAfee Inc. for $7.68 billion in cash, the company said today. The boards of both companies have agreed to the blockbuster deal, which Intel said will enable it to provide processor and network-based security.

The deal puts a 60 percent premium on McAfee's share closing price yesterday, and underscore's Intel's desire to further expand beyond its core hardware business. Intel said it will operate McAfee as a wholly owned subsidiary that will report to the company's Software and Services Group.

Intel said it has placed security at the same level of priority strategically as improving energy efficiency and providing 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," said Paul Otellini, Intel's 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."

McAfee has a broad portfolio of products that are designed to provide security for devices ranging from smart phones to PCs to core enterprise systems. Among its core competitors are Symantec, CA Technologies, IBM, Microsoft and Trend Micro.

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

The deal will close pending shareholder and regulatory approval.