Intel
Corp. is buying computer security software maker McAfee Inc. for $7.68 billion
in a move that “reflects that security is now a fundamental component of online
computing,” the Santa Clara-based chip maker said Thursday.
The $48-per-share price is a 60% premium over McAfee’s $29.93 close on Wednesday. The company, also based in Santa Clara, has seen steady growth and will report to Intel’s Software and Services Group.
Intel shares slid 3.4% to $18.92, but McAfee shares boomed nearly 58% to $47.21 in morning trading.
Cyber threats are surging, Intel said, and current security measures don’t effectively cover mobile and wireless devices or all the televisions, vehicles, medical devices and ATM machines that can now connect to the Internet.
“Hardware-enhanced security will lead to breakthroughs in effectively countering the increasingly sophisticated threats of today and tomorrow,” said Renee James, Intel senior vice president .
The deal has been unanimously approved by both companies’ boards of directors and is waiting to be cleared by shareholders and regulators.
-- Tiffany Hsu
Photo: The exterior of security software maker McAfee Inc. headquarters in Santa Clara, Calif. Credit: Paul Sakuma / Associated Press