Intel just made the largest deal in its company’s 42 year history. Intel bought the virus fighting software company McAfee for 4.9 billion pounds ($7.7 billion). They believe McAfee will help the company with the ever growing threat of hacking and viruses with computers, mobile phones, and cash machines. Anywhere a mini processor is sold, a security suite is needed the head of Intel remarked.
Shareholders were offered $48 a share, a 60 per cent premium on the closing price for McAfee shares on Wednesday.
Paul Otellini, Intel’s Chief Executive 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. Looking forward, security will join those as a third pillar of what people demand from all computing experiences.”
Intel, the US microchip giant, has been buying up companies to assist them in competing in the smart phone market which is led by ARM Holdings of Britain.
McAfee’s chief executive, Dave De Walt said the acquisition was “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 cyber threat landscape has changed dramatically over the past few years, with millions of new threats appearing every month.
“We are joining forces to tackle this next-generation cyber security issue, which impacts everyone and anything connecting to the Internet”, Otellini concluded.
Renee James, head of Intel’s software division, said: “As we look at all of the growth areas for Intel silicon, one of the consistent purchase criteria for both IT managers and consumer is security. This is a pretty natural step for us.”