In a surprise move, processor giant Intel today announced plans to acquire security vendor McAfee Inc. The deal, valued at $7.7 Billion or $48 per share in cash, is subject to McAfee shareholder and regulatory approval, but has been sanctioned by the boards of both companies.
With annual sales of $2 billion, and 80% gross margin, clearly McAfee’s security business is attractive in its own right, however Intel believe the combination of security software and hardware working together from the same provider will offer a winning combination for consumers and help McAfee compete more effectively in the marketplace.
“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.
Should the acquisition be successful, McAfee will exist as a separate business unit within Intel’s Software and Services Group, where it joins the recently acquired mobile developer Wind River and physics engine Havok. Not only will the acquisition provide McAfee with the development and marketing funds to challenge Symantec, Microsoft and other security providers, but it also opens the door for McAfee to jump on to a wider range of platforms and devices by piggy-backing Intel’s hardware.
“Hardware-enhanced security will lead to breakthroughs in effectively countering the increasingly sophisticated threats of today and tomorrow,” said by Renée James, Intel senior vice president, and general manager of the group. “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.”
“The cyber threat landscape has changed dramatically over the past few years, with millions of new threats appearing every month,” said Dave DeWalt, president and CEO of McAfee. “We believe this acquisition will result in our ability to deliver a safer, more secure and trusted Internet-enabled device experience.”
