Intel buys McAfee for US$7.7bn

19 Aug 2010

Intel has agreed to purchase antivirus software specialist McAfee for $7.68bn, making it the largest acquisition in Intel’s history.

Both companies’ boards of directors unanimously agreed to the deal, with Intel paying $48 per share.

This is a 62pc premium of McAfee’s Wednesday closing price, which was just under $30 a share.

With this purchase, Intel has now focused in the direction of security, stating that it would be “on par with its strategic focus areas in energy-efficient performance 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,” 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 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,” Otellini added.

McAfee has experienced double digit growth and nearly 80pc gross margins in 2009. It has approximately 6,100 employees.  

It will now become a wholly-owned subsidiary of Intel, reporting into Intel’s Software and Services Group.

Intel recently purchased Texas Instruments’ cable modem business for an undisclosed sum.