Intel Acquires McAfee

In a press release touting the deal, Intel refers to security as a "fundamental component" of online computing. The company says security will now be a "third pillar" of its IT approach, joining energy-efficient performance and connectivity.

Specifically, Intel has identified the billions of Internet-ready devices (such as handhelds, as well as TVs and even autos) running Intel processors that must be protected against constantly growing cyberthreats either through embedding security functions on the processor or managing security remotely via a cloud computing service.

While Intel is being fairly vague on exactly how McAfee's security and antivirus capabilities will be worked into its products, the company is promoting hardware-enhanced security as the direction it intends to take with this deal. McAfee provides a suite of software-related security solutions, including end-point and networking products and services that are focused on helping to ensure Internet-connected devices and networks are protected from malicious content, phony requests and unsecured transactions and communications.

In addition to reflecting a general increased awareness of and need for highly effective security measures, the McAfee acquisition may also reflect a general turning away from "best of breed" computing as enterprises look for easily installed, maintained, distributed and upgraded solutions.

McAfee will become a wholly owned subsidiary of Intel, reporting into Intel’s Software and Services Group. Intel paid $48 per share in cash, for approximately $7.68 billion. Both boards of directors have unanimously approved the deal, which is expected to close after McAfee shareholder approval, regulatory clearances and other customary conditions specified in the agreement.

Intel and McAfee will also jointly explore future product concepts to further strengthen security in the cloud network and Internet-connected computers and devices.