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  (Source: Digital Trends)
Intel hopes acquisition will help its "hardware enhanced security" efforts

Intel, the world's largest maker of computer processors, on Thursday announced news that shocked the tech world.  The firm would be acquiring antivirus software vendor McAfee at a price of $48 USD per share, for a total acquisition price of $7.68B USD.

Assuming the deal receives Federal Trade Commission approval, McAfee would become an Intel subsidiary, folding into the company's Software and Services Group.  

Intel made it clear that one major reason for the acquisition was to expand its wireless security offerings.  Intel, a major maker of wireless chipsets, believes that the industry is failing to address mobile security even as the market explodes with smartphones, tablets, and other mobile devices.

Paul Otellini, Intel president and CEO, comments:

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.

The acquisition also will allow Intel to expand what it calls "hardware-enhanced security".  Similar to Intel's hardware-enhanced virtualization technology, the idea here is to directly implement security features in hardware, an approach that can offer energy savings and faster performance.  

States Renée James, Intel senior vice president, and general manager of the company's Software and Services Group, "Hardware-enhanced security will lead to breakthroughs in effectively countering the increasingly sophisticated threats of today and tomorrow.  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 coming off a strong year in 2009, in which it earned a total revenue of $2B USD, the most of any dedicated security firm.  The company was founded in 1987 and is based out of Santa Clara, Calif., the same location as Intel's headquarters.  Intel was founded in 1968.

The surprise announcement has approved a boon for investors with McAfee shares.  Share prices soared over 50 percent from around the $30 mark to above $47.

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RE: Wow
By koenshaku on 8/19/2010 10:53:15 AM , Rating: 2
lol mcafee has been really bad for many years even to a point where an update crashed windows 7 systems. I think this was a bad purchase decision because these third party anti virus apps are going the way of the dinosaur because of microsoft's free offering MS security essentials.

RE: Wow
By Visual on 8/19/2010 11:00:21 AM , Rating: 2
ms security essentials is not licensed for office computers though, only personal ones.

RE: Wow
By GaryJohnson on 8/19/2010 11:20:10 AM , Rating: 2
The (paid) business equivelant of MSE is Forefront.

RE: Wow
By bruce24 on 8/19/2010 11:01:33 AM , Rating: 1
I don't think they bought McAfee because they wanted to sell Anti Virus software. I think they bought it because they want to add "hardware-enhanced security" to their products and reduce the impact on a systems of running Security related software.

RE: Wow
By mcnabney on 8/19/2010 11:26:04 AM , Rating: 2
That is a hell of a lot of money to invest for those limited goals. Maybe the record revenues at Intel has gotten to them. Maybe those fabs really do print money.

RE: Wow
By bruce24 on 8/19/2010 1:37:22 PM , Rating: 2
Limited goals? I think their goals, include but are not limited to, trying to give people a reason to buy a new computer as well as give their processors a capability their competition doesn't have.

RE: Wow
By strikeback03 on 8/19/2010 11:29:59 AM , Rating: 4
I just hope McAfee doesn't cause the processors to run like crap.

RE: Wow
By Marlowe on 8/19/2010 3:56:26 PM , Rating: 2
In the future if the cpu detects a trojan it will disable all but one memory channel, throttle the integrated gpu and disable half the L2 cache ;-)

RE: Wow
By Phynaz on 8/19/2010 11:28:26 AM , Rating: 4
You don't realize that PC Antivirus is a small portion of what MacAffee does.

Intel bought them for their embedded security.

RE: Wow
By putergeek00 on 8/19/2010 1:06:20 PM , Rating: 3
I remember going to an Intel Channel Conference about 8 years ago and the Intel Rep talked about the Network Card detecting virii and then disabling the NIC. They even went as far as to say it was 100% effective with no false positives. The problem was that it was hardware based(no way to turn it on/off), and they were apprehensive about implementing it because of what would/could happen if NICS started disabling. Kind of a catch 22. Looks like this may be the ticket they were looking for.

RE: Wow
By Paulywogstew on 8/19/2010 1:22:43 PM , Rating: 2
McAfee just acquired WaveSecure. I use this on my HTC EVO it allows me to track my phone if someones using it and lock it down looks like this is where intel is going with there acquisition of McAfee

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