Intel announced on Thursday their agreement to purchase all of McAfee’s common stocks at $48 a share, a deal approximately worth $7.68 billion. McAfee will act as a wholly-owned subsidiary and report to Intel’s Software and Services Group. The endeavor marks what is sure to be a harmonious relationship for two of the world’s leading hardware and software companies at a time when mobile markets are booming, a sector which remains untapped from a securities standpoint.
"Our view is that everywhere we sell a microprocessor, there is an opportunity to sell security software with it," said Paul Otellini, Intel president and CEO. “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,” Otellini added.
The acquisition comes on the heels of two incredibly successful years for Intel and McAfee, who both posted huge financial gains in Q2 of this year. Intel saw its profits soar to record heights, reaching $2.9 billion, a number which shadowed the $445 million in profits of the previous quarter and eclipsed year-over-year profits by a massive $3.3 billion.
McAfee, the world’s largest security technology company, saw their profits increase 38% year-over-year, up to $39.4 million from the $28.7 million of 2009. It was also during this quarter that the company acquired the privately owned Trust Digital in May and tenCube back in July, both of which are mobile security software firms. Their intentions behind these purchases have become glaringly clear, as Intel's acquisition of McAfee comes at a time where mobile and portable devices lead us into the dawn of a digital renaissance unprotected from growing digital threats.
“Hardware-enhanced security will lead to breakthroughs in effectively countering the increasingly sophisticated threats of today and tomorrow,” said Renée James, Intel senior vice president, and general manager of Intel’s Software and Services 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.”