Intel said Thursday that the chipmaker will purchase security software vendor McAfee in an all-cash transaction valued at $7.68 billion — equivalent to a 60 percent premium over the closing price for McAfee shares on Wednesday. Unanimously approved by the boards of both companies, Intel said it hopes to complete the acquisition of McAfee as early as the end of this year, subject to regulatory review and other factors.
Security has now become the “third pillar” of online computing — on par with energy-efficient performance and connectivity, noted Intel CEO Paul Otellini. By combining McAfee’s security software and Intel’s hardware capabilities in a single solution, the chipmaker hopes to better protect consumers, corporations and governments.
“I believe we are entering a new era of computing platforms that has broad implications for our company and for computer users worldwide,” Otellini told analysts during a conference call Thursday morning.
An Important Strategic Step
With the rapid expansion of Internet-connected gadgets — such as mobile devices, medical gear, TVs, cars and ATM machines, as well as servers and cloud-based networks — more of the elements of our lives have moved online, Otellini observed.
“In the past, energy-efficient performance and connectivity have defined computing requirements,” Otellini said. “The addition of McAfee products and technologies into the Intel computing portfolio brings us incredibly talented people with a track record of delivering security innovations, products and services that the industry and consumers trust to make connecting to the Internet safer and more secure.”
The acquisition is a direct outgrowth of an ongoing collaboration between McAfee and Intel over the past 18 months. “This is an important strategic step,” Otellini told analysts. “In working together, the notion of moving on beyond just partnering became clear.”
The close partnership made Intel realize the value of “a deeper collaboration” that would enable…