Intel on Thursday said it has entered into a definitive agreement to buy McAfee, the computer security software company, for $7.68 billion in cash, puchasing of all of the company’s common stock at $48 per share. McAfee shares closed at $29.93 at the end of trading on Wednesday.
Both boards of directors have approved the deal, which is expected to close after McAfee shareholder approval, regulatory clearances and other customary conditions.
McAfee will operate as a wholly-owned subsidiary, reporting into Intel’s Software and Services Group and managed by Renée James, Intel senior vice president, and general manager of the group.
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.
“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 fast-growing business areas, especially around the move to wireless mobility.”
McAfee, based in Santa Clara and founded in 1987, had approximately $2 billion in revenue in 2009 and has 6,100 employees worldwide. McAfee has enjoyed double-digit, year-over-year growth and nearly 80 percent gross margins last year.