Intel acquires McAfee
Intel, the world's largest chip maker, has announced that it has reached an agreement to acquire security services provider McAfee. Under the terms of the deal, Intel has agreed to purchase all of McAfee's common stock for $48 per share, valuing the cash deal at a total of approximately $7.68 billion (£4.91 billion). The per share price comes at a 60% premium to its closing price on Wednesday.
Intel says that the deal is intended to increase its security services and notes that, inside the company, it has "elevated the priority of security to be on par with its strategic focus areas in energy-efficient performance and Internet connectivity." Intel added however, that it is likely the acquisition will reduce its net earnings in the first year.
Discussing the announcement, McAfee president and Chief Executive Officer David DeWalt said, “The cyber threat landscape has changed dramatically over the past few years, with millions of new threats appearing every month,” adding that, “We believe this acquisition will result in our ability to deliver a safer, more secure and trusted Internet-enabled device experience.”
Originally founded in 1987, McAfee is based in Santa Clara and currently employs approximately 6,100 people. It's best known for its various ant-virus and internet security software products and turned over $2 billion in revenue last year.
The deal is expected to close following McAfee shareholder approval and the customary regulatory clearances. Both the Intel and McAfee boards of directors have already "unanimously approved the deal".
- McAfee acquires Trust Digital, a report from The H.