Intel To Buy McAfee For $7.68B; $48/Shr; Security Sector Soars – Tech Trader Daily –

In a stunning development that seems totally out of left field, semiconductor giant Intel INTC this morning announced a deal to acquire the security software company McAfee MFE for $7.68 billion, or $48 per share in cash. The agreement has been approved by the boards of both companies, but is subject to MFE holder approval and regulatory clearances.Intel said in a statement that the deal “reflects that security is now a fundamental component of online computing,” adding that “providing protection to a diverse online world requires a fundamentally new approach involving software, hardware and services.”Intel will become a wholly owned Intel subsidiary, reporting to the company’s software and services group, run by Intel senior VP Renee James.In a statement, Intel CEO Paul Otellini said that “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. Looking forward, security will join those as a third pillar of what people demand from all computing experiences.”McAfee, which like Intel is based in Santa Clara, California, had about $2 billion in revenue in 2009, and has about 6,100 employees. The company sells anti-virus, firewall, intrusion protection and other security software.Intel said the deal will be slightly dilutive to GAAP earnings in the first year of operations, and about flat in the second year. On a non-GAAP basis, excluding a one-time write-down of deferred revenue and amortization of intangibles, Intel said the deal will be slightly accretive in year one and improve after that.

via Intel To Buy McAfee For $7.68B; $48/Shr; Security Sector Soars – Tech Trader Daily –

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