Intel acquires McAfee for US $7.68 Billion
According to a press release issued early this morning, Intel is set to acquire all of McAfee's common stock for US$48 per share in cash, for a total aggregate price of US$7.68 billion. McAfee will operate as a wholly-owned subsidiary, reporting into Intel's Software and Services Group, which is led by Renée James. The deal is still conditional, but is expected to close following McAfee shareholder approval, regulatory clearances and other conditions outlined in the agreement.
Intel's rational for the deal is as follows:
"The acquisition reflects that security is now a fundamental component of online computing. Today’s security approach does not fully address the billions of new Internet-ready devices connecting, including mobile and wireless devices, TVs, cars, medical devices and ATM machines as well as the accompanying surge in cyber threats. Providing protection to a diverse online world requires a fundamentally new approach involving software, hardware and services."
Intel's President & CEO, Paul Otellini, talked a bit about the three pillars that consumers demand from all computing experiences:
“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. 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.”
Based in Santa Clara, California, McAfee produced double-digit revenue growth last year as total sales for 2009 came in just under US$2 billion. It is unknown how many of the 6,100 McAfee employees will make the shift over to Intel and when the acquisition will be fully integrated into Intel operations. More details will follow once information becomes available.
