Intel shook up the security landscape, announcing that it has
agreed to acquire antivirus software maker McAfee for USD 48 per
share, or USD 7.68 billion. The deal, if it passes regulatory
muster, would enable the chipmaker to offer tightly integrated
hardware and software security solutions for PCs, servers, and
mobile devices.
Intel said it plans to operate McAfee as wholly-owned subsidiary
within its Software and Services group. Company officials said the
increase in threats that target online computing is a major reason
behind the acquisition.
"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 Intel CEO Paul Otellini, in a
statement.
"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," said Otellini.
The deal is sure to alter the competitive picture in the security
industry, as it puts Intel into competition with Symantec and
Microsoft—two vendors with which the chipmaker has previously
partnered.
But Intel officials said they've come to believe that security
software needs to be tightly coupled with processors for it to be
truly effective against a growing range of viruses, malware, and
spyware. "Hardware-enhanced security will lead to breakthroughs in
effectively countering the increasingly sophisticated threats of
today and tomorrow," said Renee James, senior VP of Intel Software
and Services, in a statement.
Those threats, while harmful to computer users, have helped McAfee
increase its top and bottom lines in recent quarters as consumer
and business spending on security software has grown in the face of
mounting concerns over identity theft, piracy, and other types of
cyberattacks. McAfee posted double-digit growth last year on
margins of almost 80 percent.
McAfee executives said operating under Intel would allow their
organization to offer more solutions for a broader array of
platforms. "We believe this acquisition will result in our ability
to deliver a safer, more secure and trusted Internet-enabled device
experience," said McAfee CEO Dave DeWalt, in a statement.