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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 CheesePoofs on 8/19/2010 11:07:48 AM , Rating: 5
Having worked in a computer store for a long while, I saw far more computers come in infected to the gills with McAfee installed than would seem normal. Not that NAV was any better.

RE: Wow
By mcnabney on 8/19/2010 11:23:49 AM , Rating: 5
In the day and age of MSE why is anyone giving McAfee (or Norton) their money?

Seriously, I am going to sell all of my Intel shares because apparently their leadership has lost their freakin minds. $7.68B for McAfee? Not even in the .Com age!

Also, gee thanks, but I don't really need crappy and amazingly inefficient AV software on my Droid. Some of us bother to keep the integrated security of Android OS in mind when installing apps.

RE: Wow
By watkinsaj on 8/19/2010 2:33:38 PM , Rating: 5
I would have valued McAfee at $2.56B, maybe $5.12B at the most.

RE: Wow
By roadhog1974 on 8/19/2010 9:20:58 PM , Rating: 2
no love for $10.24B ?

RE: Wow
By fleabag on 8/20/2010 3:36:23 AM , Rating: 2
worth more like 1024M at the most..

RE: Wow
By ARoyalF on 8/20/2010 11:09:33 PM , Rating: 2

RE: Wow
By mattclary on 8/19/2010 11:53:06 AM , Rating: 5
I've seen an equal share of McAfee and Norton/Symantec (mainly because they are the biggest) and just about every other kind out there. The only thing that will really protect you is common sense, something that is sorely lacking amongst most.

"There is a single light of science, and to brighten it anywhere is to brighten it everywhere." -- Isaac Asimov

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