Intel to pay $7.7bn for McAfee

Chip maker Intel is buying computer-security software maker McAfee for $7.68bn (€6bn) it announced today.

The $48-per-share price represents a 60% premium over McAfee’s Wednesday closing price of $29.93.

Intel, based in California, said security was now a fundamental component of online computing, but today’s approach to security was not adequate for the growing availability of internet connections on mobile phones, medical devices, ATMs, cars and elsewhere.

The industry needs a new approach that combines software, hardware and services to meet tomorrow’s needs, the company said.

Intel CEO Paul Otellini said energy-efficient performance and connectivity were key computing requirements but now “security will join those as a third pillar of what people demand from all computing experiences.”

Both boards of directors have unanimously approved the deal. The deal still requires McAfee shareholder approval and regulatory clearances.

McAfee is one of the world’s largest security technology companies with about $2bn (€1.6bn) in revenue last year.