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Intel to buy web security firm McAfee for pounds 5bn(Guardian (UK) Via Acquire Media NewsEdge) Intel has agreed to buy the security software firm McAfee for $7.68bn (pounds 4.9bn). The microprocessor group, which controls more than 70% of the global market for microchips, will pay $48 for each McAfee share. Paul Otellini, president and 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. Security will now join those as a third pillar of what people demand from all [their] computing experiences." The deal has been agreed by both companies' boards, but still requires approval from McAfee shareholders and clearance by regulators. Dave DeWalt, McAfee's president and chief executive, said: "[The deal] is big news for McAfee and big news for Intel, but bigger news for our combined customers, the security industry and the future of the internet." The acquisition - Intel's biggest since buying Level One Communications for $2.2bn in 1999 - signals the company's intention to expand outside the confines of hardware, said Otellini. Industry observers are anticipating a "ripple effect", saying that it highlights the ever-growing importance of computer security. "With this acquisition Intel is addressing areas that we really need to get better at protecting: smartphones, televisions, medical technology and cash machines," said Pat Clawson, the chief executive of software security firm Lumension. This month, Intel struck a deal with the US federal trade commission requiring the company to modify its intellectual property agreements to give its competitors more freedom. It followed charges that it had exploited its market dominance by punishing computer-makers who opted to use alternative chips. McAfee shares surged 58% to $47.42 after the deal was announced yesterday while Intel shares slipped 2.5% to $19.11. (c) 2010 Guardian Newspapers Limited. |