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Corporation has
entered into a definitive agreement to acquire McAfee Inc, through
the purchase of all of the company's common stock at $48 per share
in cash, for approximately $7.68 billion. Both boards of directors
have unanimously approved the deal, which is expected to close after
McAfee shareholder approval, regulatory clearances and other
customary conditions specified in the agreement.
The acquisition reflects
that security is now a fundamental component of online computing.
Today's security approach does not fully address the billions of
new Internet-
devices
connecting mobile and wireless devices, TVs, cars, medical
devices and ATM machines as well as the accompanying surge in cyber
threats. Providing protection to a diverse online world requires a
fundamentally new approach involving software, hardware and services.
Inside Intel, the company
has elevated the priority of security to be on par with its strategic
focus areas in energy-efficient performance and Internet
connectivity.
which has enjoyed
a double-digit YoY growth and nearly 80 percent gross margins last
year, will become a wholly-owned subsidiary of Intel, reporting into
Intel's Software and Services Group. The group is managed by
Renée
James, Sr VP, Intel and GM of the group. “With the rapid expansion
of growth across a vast array of Internet-connected devices, more and
more elements of our lives have moved online,” said Paul Otellini,
President and CEO, Intel. “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,” stated Otellini.
“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,” Otellini added.
“Hardware-enhanced
security will lead to breakthroughs in effectively countering the
increasingly sophisticated threats of today and tomorrow,” said
James. “This acquisition is consistent with our software and
services strategy to deliver an outstanding computing experience in
the fast-growing business areas, especially around the move to
wireless mobility.” She further added, “McAfee is the next step
in this strategy, and the right security partner for us. Our current
work together has impressive prospects, and we look forward to
introducing a product from our strategic partnership next year.”
“The cyber threat
landscape has changed dramatically over the past few years, with
millions of new threats appearing every month,” said Dave DeWalt,
President and CEO of McAfee. “We believe this acquisition will
result in our ability to deliver a safer, more secure and trusted
Internet-enabled device experience.”
McAfee, based in Santa
Clara, California, was founded in 1987 and is the world's largest
dedicated security technology company with approximately $2 billion
in revenue in 2009. With approximately 6,100 employees, McAfee's
products and technologies deliver secure solutions and services to
consumers, enterprises and governments around the world and include a
strong sales force that works with a variety of customers.
The company has a suite of
software-related security solutions, including end-point and
networking products and services that are focused on helping to
ensure Internet-connected devices and networks are protected from
malicious content, phony requests and unsecured transactions and
communications. Among others, products include McAfee Total
Protection, McAfee Antivirus, McAfee Internet Security, McAfee
Firewall, McAfee IPS as well as an expanding line of products
targeting mobile devices such as smartphones.
Intel has made a series of
recent and successful software acquisitions to pursue a deliberate
strategy focused on leading companies in their industry delivering
software that takes advantage of silicon. These include gaming,
visual computing, embedded device and machine software and now
security.
Home to two of the most
innovative labs and research centers in the high-tech industry, Intel
and McAfee will also jointly explore future product concepts to
further strengthen security in the cloud network and myriad of
computers and devices people use in their everyday lives.
On a GAAP basis, Intel
expects the combination to be slightly dilutive to earnings in the
first year of operations and approximately flat in the second year.
On a non-GAAP basis, excluding a one-time write down of deferred
revenue when the transaction closes and amortization of acquired
intangibles, Intel expects the combination to be slightly accretive
in the first year and improve beyond that.