Microprocessor giant Intel buys security tech firm McAfee for £5bn

Global microchip giant Intel has agreed to buy the security technology firm McAfee for £5billion.

Under the terms of the deal, Intel will pay £31 per share for McAfee, nearly 60 per cent more than its closing price on Wednesday.

The company has said security is now a fundamental component of online computing, but that today's approach was inadequate to cope with the growing availability of internet connections through mobile phones, medical devices, ATMs and elsewhere.

Tech deal: Intel has agreed to buy security technology firm McAfee for £5billion in a bit to protect its microprocessors

McAfee, one of the world's biggest security technology companies, will assist Intel in protecting its microprocessors from malicious software.

The announcement saw its shares soar 58 per cent today to hit £30 in pre-market trading.

Paul Otellini, chief executive of Intel, said: '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.'

Boost: Shares in McAfee, which is also based in Santa Clara, California, soared 58 per cent after the announcement

Dave DeWalt, president and chief executive of McAfee, said cyber attacks were a growing menace.

He said: 'The cyber threat landscape has changed dramatically over the past few years with millions of new threats appearing every month.'

Intel has been persistently trying to expand into the market for smart phones and other internet-connected wireless devices.

It has made a series of recent software acquisitions including companies that specialise in gaming, visual computing, embedded device and machine software.

The deal is likely to reduce earnings for Intel in the first year.

Both boards of directors have unanimously approved the deal, but it will still require McAfee shareholder approval and regulatory clearances.

Source: http://uwillreadnews.blogspot.com/2010/08/microprocessor-giant-intel-buys.html