In an effort to expand their reach into the security industry, Intel has announced that they will be purchasing security-software developer McAfee Inc. Intel acquired the company for $7.68 billion, a deal that was the largest in Intel’s history.
Intel, who is known for developing chips and hardware for most of today’s computers, made the acquisition with the hope of improving security by developing hardware that has built-in security measures. Paul Otellini, Intel’s chief executive officer, stated, “We believe security will be most effective when enabled in hardware.”
The acquisition values McAfee at $48, with their stock jumping 58 percent after the announcement of the deal. Intel’s stock slipped, however, by 2.5 percent.
Both boards of directors unanimously agreed on the deal, although it still requires the approval of shareholders. McAfee’s President and Chief Executive, Dave DeWalt, stated, “I’m very excited and fully committed to joining the Intel team.”
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