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Intel to snap up McAfee in US $7.68 billion deal

Intel to snap up McAfee in US $7.68 billion deal

By Press Trust of India | Updated: 5 June 2012 02:24 IST

Highlights

Intel Corp will acquire security software company McAfee Inc in an all-cash deal worth US $7.68 billion that will bolster the world's largest chip-maker's computing portfolio, especially in wireless mobility offerings.

Intel Corp will acquire security software company McAfee Inc in an all-cash deal worth US $7.68 billion that will bolster the world's largest chip-maker's computing portfolio, especially in wireless mobility offerings.

The chip-maker will purchase all the common shares of McAfee at a price of US $48 per piece, valuing the deal at US $7.68 billion, Intel said in a statement on Thursday.

Both the companies have a good presence in India.

In the backdrop of improving economic conditions, there have been a slew of deals worldwide in recent months. Earlier this week, computer-maker Dell on Monday had announced that it would acquire data storage company 3PAR Inc for US $1.15 billion.

"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," Intel Senior Vice-President Renee James said.

James noted that the company would be looking forward to introduce a product from the strategic partnership next year.

In recent times, Intel has made a string of buyouts of software entities, including Wind River and Havok.

Both companies have entered into a definitive agreement for the proposed McAfee transaction, which has been approved by their respective boards of directors.

McAfee, which employs about 6,100 employees, had annual revenue of US $2 billion in 2009. The firm offers a suite of software-related security solutions, including McAfee Antivirus and McAfee Firewall, with many products targeted at mobile devices such as smart phones.

"The acquisition augments Intel's mobile wireless strategy, helping to better assure customer and consumer security concerns as these billions of devices connect," the statement said.

Once the deal is complete, McAfee would become a wholly-owned subsidiary of Intel. The security software company would report to Intel's Software and Services Group, which is managed by James.

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