In a press release this morning Intel has announced they will be purchasing the popular security software company McAfee for $7.68 Billion ($48.00 per common share). According to Intel, the purchase will help combine security and hardware to help better protect consumers, corporations and governments as billions of devices – and the server and cloud networks that manage them – go online.
Intel is elevating its view on security, hoping to better assure customer and consumer security concerns.
McAfee has successfully gained double digit growth each year and close to 80% gross margin for 2009. With the purchase Mcafee will become a wholly-owned subsidiary of Intel, reporting into Intel’s Software and Services 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 Renée James, Intel senior vice president, and general manager of the 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.”
“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.
Intel has made a series of recent and successful software acquisitions including Wind River, Havok and now McAfee 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.