Intel has just bought computer and software security company McAfee. McAfee, Inc. (NYSE: MFE) makes antivirus and computer security software. Their primary brand is McAfee VirusScan, but other brands include IntruShield, Entercept, and Foundstone.
according to a release issued this morning. The all cash deal is worth $7.68 billion, or $48 per share. See the release below.
The $48-a-share deal marks a change of direction as the giant chip maker now jumps into the security business. Intel said it will make Santa Clara, Calif.-based McAfee a wholly-owned unit, reporting into its software and services group.
McAfee is one of the largest security technology companies in the world and saw $2 billion in revenue in 2009. Cyber security, whether it be on computers or mobile devices, is a lucrative business as internet use is on the rise. And McAfee also offers smartphone security software, through the recent acquisitions of Trust Digital and TenCube. Clearly, Intel wants a piece of the pie.
McAfee, which was founded in 1987 and has about 6,100 employees, posted double-digit annual growth and nearly 80% gross margins last year. The company sells a suite of software-related security solutions, including McAfee Total Protection, McAfee Antivirus and McAfee Internet Security.
It's not hard to imagine that Intel will combine its capabilities and resources in the hardware development area with McAfee's extensive security know-how to produce new solutions that will possibly change the security landscape.
Intel sees the acquisition almost immediately adding to its bottom line, saying it sees it being slightly accretive on a non-GAAP basis in the first year. On a GAAP basis, Intel said the deal will be slightly dilutive in the first year of operations and approximately flat in the second year.
Mcafee
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