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Here’s Intel’s press release, verbatim:
Intel Corporation has entered into a definitive agreement to acquire McAfee, Inc., through the purchase of all of the company’s common stock at $48 per share in cash, for approximately $7.68 billion. Both boards of directors have unanimously approved the deal, which is expected to close after McAfee shareholder approval, regulatory clearances and other customary conditions specified in the agreement.
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.
Inside Intel, the company has elevated the priority of security to be on par with its strategic focus areas in energy-efficient performance and Internet connectivity.
McAfee, which has enjoyed double-digit, year-over-year growth and nearly 80 percent gross margins last year, will become a wholly-owned subsidiary of Intel, reporting into Intel’s Software and Services Group. The group is managed by Renée James, Intel senior vice president, and general manager of the group.
“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.
“Hardware-enhanced security will lead to breakthroughs in effectively countering the increasingly sophisticated threats of today and tomorrow,” said James. “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.”
“McAfee is the next step in this strategy, and the right security partner for us,” she added. “Our current work together has impressive prospects, and we look forward to introducing a product from our strategic partnership next year.”
“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.”
McAfee, based in Santa Clara and founded in 1987, is the world’s largest dedicated security technology company with approximately $2 billion in revenue in 2009. With approximately 6,100 employees, McAfee’s products and technologies deliver secure solutions and services to consumers, enterprises and governments around the world and include a strong sales force that works with a variety of customers.
The company has a suite of software-related security solutions, including end-point and networking products and services that are focused on helping to ensure Internet-connected devices and networks are protected from malicious content, phony requests and unsecured transactions and communications. Among others, products include McAfee Total Protection™, McAfee Antivirus, McAfee Internet Security, McAfee Firewall, McAfee IPS as well as an expanding line of products targeting mobile devices such as smartphones.
Intel has made a series of recent and successful software acquisitions to pursue a deliberate strategy focused on leading companies in their industry delivering software that takes advantage of silicon. These include gaming, visual computing, embedded device and machine software and now security.
Home to two of the most innovative labs and research in the high-tech industry, Intel and McAfee will also jointly explore future product concepts to further strengthen security in the cloud network and myriad of computers and devices people use in their everyday lives.
On a GAAP basis, Intel expects the combination to be slightly dilutive to earnings in the first year of operations and approximately flat in the second year. On a non-GAAP basis, excluding a one-time write down of deferred revenue when the transaction closes and amortization of acquired intangibles, Intel expects the combination to be slightly accretive in the first year and improve beyond that.
Intel was advised by Goldman Sachs & Co. and Morrison & Foerster LLP. McAfee was advised by Morgan Stanley & Co. Inc. and Wilson Sonsini Goodrich & Rosati, P.C.
Source: Intel Corporation
fAc Mee !
$7+ billion for THAT company?
Seems a little high to me.
So Intel are now borrowing a leaf from Apple inc.s book, I expect the next step will be for them to buy a PC box assembler.
Seven billion for a software security company? That must be SUM CHECK. “I’d like to cache this please.”
“The acquisition reflects that security is now a fundamental component of online computing”
Buy a Mac.
This is strange, Microsoft Security Essentials is free anti-malware and it has the benefit of no more OS update/anti-malware conflicts like what occurs with a third party anti-malware solution.
So once the word gets out and enough of the always typical “can I get it for free” PC crowd shifts over to using Essentials instead of paid anti-malware, why is Intel even bothering to buy something that is going to decline in the oncoming years?
The only thing I can think of is Intel plans to put anti-malware in EFI/BIOS??
Someone has a patent on anti-malware running in EFI already.
Yea folks, your EFI on your Mac can do just about anything without the OS or you even knowing about it or even before it’s loaded with your anti-snooping software like LittleSntich.
EFI is part of the “Trusted Computing” thing that it would check your programs and content on your drive, call out over the internet without you even knowing about it and act as a blocker between the OS and hardware calls. So a DVD might not play if EFI recognizes Handbrake on the drive for instance.
A firmware on steroids with a “big brother” snooping ability. EFI even has it’s own partition on the drive. Boo!
“The cyber threat landscape has changed dramatically over the past few years, with millions of new threats appearing every month,””
Millions……. every month……. er…… ? ……… so if the Mac gets a trojan two or three times a year, its 10 million times better than a PC???
Just a thought, (a wonderful, delicious, entertaining thought
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If you think this is about their anti-virus or malware agents then go look at their real product listing. They have some real solid stuff on the Enterprise level, like the Secure Computing products. Not everything is about desktop a/v and mac vs. windows viruses.
When I saw “McAfee” on Twitter’s trending topics, I was hopeful that they had gone out of business, ridding the world of their useless products that shouldn’t even exist, but alas, it was not to be.
Intel can dominate the fart app world with this acquisition.
This can only mean one thing – MS is due to release their zune phone and zune pad! Go Atom…
Can someone please explain why Intel would want to acquire McAfee under any circumstances? Looks to me like Intel has lost its marbles.
Intel is betting on explosive growth in the Android virus market.
A Coward
You want the PC site for your drivel, this is Mac site.
Ha! Ha! HA! Intel needs to protect itself from all the M$ junk!…
all I know, I am glad I am not an Intel shareholder. A waste of $7.68 billion (“with a b”). As stated earlier, @zmarc, it is a windows bet. The enterprise-focused Secure Computing is not a major portion of the business, and there is nothing there that is not in Cisco IOS, or a FOSS platform except a windows interface. Oh well, its not my money….
I guess you CAN put a price on FUD.
Paul Otelini frantically IM’s his head of M&A:
“OMG, WTF! I said M&A should buy some Macs! This is not what I meant!”
Who can AMD afford to buy?
Joey and Guido?