Intel to acquire McAfee for $7.7bn | NotebookReview

Tinderbox (UK) BAKED BEAN KING

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FT.com / Technology - Intel to acquire McAfee for $7.7bn

Intel, the US chipmaker, said on Thursday that it would acquire McAfee, the antivirus software company, in a $7.68bn deal that would enhance its ability to combat hacking and viruses as it pushes deeper into mobile computing.

The cash deal offers McAfee shareholders a 60 per cent premium above the companys closing stock price on Wednesday. Shares of McAfee surged 57.5 per cent to $47.17 in early trading on Thursday, while Intels shares dropped 3.6 per cent to $18.88.

The acquisition is Intels biggest in its history the next largest deal was the takeover of Level One in 1999 for $2.2bn

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, Intels chief executive. 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 California-based Intel said the deal would help it to serve the security needs of customers through a combination of hardware and software as more devices such as smartphones, televisions, medical technology and cash machines go online.

McAfee, which is also based in Santa Clara, California, will become a subsidiary of Intel and report to its Software and Services Group. It had $2bn in revenues last year and employs 6,100 workers.

We believe this acquisition will result in our ability to deliver a safer, more secure and trusted internet-enabled device experience, Dave DeWalt, McAfees chief executive said in a statement.

Goldman Sachs advised Intel on the deal and McAfee was advised by Morgan Stanley.

Copyright The Financial Times Limited 2010. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web.

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Tinderbox (UK), Aug 19, 2010

#1

scadsfkasfddsk Notebook Evangelist

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Perhaps Intel can sort out McAfee so they bring out a consumer product worth using.

scadsfkasfddsk, Aug 20, 2010

#2

Baserk Notebook user

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So, Intel will underclock future mobile phones automatically?
Nice...
A good incentive to propagate even pricier CPU's in the exploding smart phone market.

(I mean, exploding markets. Not exploding smart phones )

Last edited by a moderator: May 8, 2015

Baserk, Aug 20, 2010

#3

Deks Notebook Prophet

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jsf_enthusiast said: ↑

Perhaps Intel can sort out McAfee so they bring out a consumer product worth using.

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How would they do this exactly?
Norton managed to clean up their act all by themselves, and McAfee is no slouch of a company either, so they shouldn't need external help.

Then again ...

What exactly would this merger bring?

Deks, Aug 20, 2010

#4

scadsfkasfddsk Notebook Evangelist

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Well Symantec cleaned up the various Norton products 2 or 3 years ago now. You would think that McAfee would have done the same but they haven't.

scadsfkasfddsk, Aug 20, 2010

#5