Cloud Security – Intel buys security software firm McAfee for $7.68B

Intel announced today that it will acquire McAfee, maker of anti-virus and other security software, for $7.68 billion in cash, or $48 per share.

The per share price is 60 percent more than McAfee’s $29.93 closing price on Wednesday. McAfee shares jumped 58 percent after the deal was made public to $47.42 in pre-market trading, while Intel shares dipped 2.5 percent to $19.11, the AP reports.

The boards of both companies have unanimously approved the deal, but it’s still pending McAfee shareholder and regulatory approval. Intel said the deal “reflects that security is now a fundamental component of online computing.” Intel went on to say that security is now just as important to the company as energy efficiency and internet connectivity.

McAfee will become a wholly owned subsidiary of Intel and will report to its Software and Services Group. Both companies are based in Santa Clara, Calif. Founded in 1987, McAfee has some 6,100 employees, and saw $2 billion in 2009 revenue.

Intel will benefit from McAfee’s entrenched position in the security field, and McAfee may be able to optimize its notoriously performance-hungry software now that it’s a part of the company that provides the CPUs to many computers.

Intel recently announced its best quarter ever with $2.9 billion in profit, thanks to an influx of delayed computer purchases by businesses.

Companies: Intel, McAfee

Source: Reuters

About CloudBuzz

Discover some of the top aggregated and curated technology news stories from around the world under the CloudBuzz authorship.

Catchup on trending stories related to Big Data, Cloud Computing, Wearable Technology, Internet of Things, Virtual Reality, Mobile Technologies and much more from some of the top information sources.

Find out more
View All Articles

Sorry, comments are closed for this post.

Sponsor Programs
Cloud Thought Leaders And Contributors

Write For Us - Find Out More!

CloudTweaks is recognized as one of the leading influencers in cloud computing, infosec, big data and the internet of things (IoT) information. Our goal is to continue to build our growing information portal by providing the best in-depth articles, interviews, event listings, whitepapers, infographics and much more.