US microprocessor giant Intel is to buy security software maker McAfee by purchasing of all of the company’s common stock at $48 per share in a cash deal worth around $7.68bn.
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.
McAfee, which has enjoyed double-digit, year-over-year growth and nearly 80 per cent gross margins last year, will become a wholly-owned subsidiary of Intel, reporting into Intel’s Software and Services Group managed by Renée James, Intel senior vice president, and general manager of the group.
McAfee, based in Santa Clara and founded in 1987, had approximately $2bn 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.
Among others, its 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.