Intel announced that it is purchasing the computer security giant McAfee approximately $7.68 billion (about $48 per share in cash). McAfee is the second largest security technology company (next only to Symantec) in providing Antivirus software and security solutions for computers. McAfee founded in 1987 is also based in Santa Clara with approximately $2 billion in revenue in 2009.
Intel has been trying hard to break into the smartphone and other consumer electronics industry. However, Apple and Intel’s power hungry chips have prevented it becoming one of the leading players in mobile industry. Intel said that McAfee will operate as a wholly-owned subsidiary of Intel and will report to Intel’s Software and Services Group managed by Renée James, Intel senior vice president. In Intel’s press release, Paul Otellini, Intel president and CEO, said
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. 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
Intel believes that with so many internet-enabled devices around online security is the next big thing it needs to focus on. And the new approach to provide security has to integrate software, hardware and services. Renee James said that
Hardware-enhanced security will lead to breakthroughs in effectively countering the increasingly sophisticated threats of today and tomorrow. 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.
Dave DeWalt, president and CEO of McAfee said that
The cyber threat landscape has changed dramatically over the past few years, with millions of new threats appearing every month. We believe this acquisition will result in our ability to deliver a safer, more secure and trusted Internet-enabled device experience.