Intel to acquire McAfee

Stephen Withers
Friday, 20 August 2010 08:54

IT Industry - Deals

Security vendor McAfee is to become part of the Intel stable in a $US7.7 billion cash deal.

Intel and McAfee have entered into a definitive acquisition agreement that will see the semiconductor giant pay around $US7.7 billion for the security company. The offer represents an approximate premium of 60% on McAfee's recent share price.

The deal has the unanimous approval of both boards, but is subject to shareholder approval and regulatory clearance. The existing McAfee management team has committed to staying with the company for "multiple years" and Intel has committed to the continuation of the McAfee brand and all of its products offerings.

The acquisition is part of Intel's response to the prospect of billions of Internet-connected devices. Intel and McAfee formed a strategic partnership 18 months ago.

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."

The plan is that McAfee will operate as a stand-alone, wholly-owned subsidiary of Intel, benefiting from its parent's technology investments, market reach, brand, and global employee base.

What did other executives have to say about the proposed acquisition? See page 2.