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.