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Intel buys McAfee for $7.7B

Thursday, August 19, 2010
By Gina Roos

Santa Clara, Calif. — Intel Corp. has entered into a definitive agreement to acquire McAfee, Inc. (Santa Clara, Calif.) for $7.68 billion, indicating that the company’s security priority now matches its strategic focus in energy efficiency and Internet connectivity. Intel says providing protection to a diverse online world requires a fundamentally new approach involving software, hardware and services.

“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,” said Paul Otellini, Intel president and CEO, in a statement.

The acquisition reflects that security is now a fundamental component of online computing, said Intel. However, the security approach does not fully address the new Internet-ready devices connecting TVs, cars, medical devices and ATM machines as well as the surge in cyber threats, added the chip maker.

McAfee, which has achieved double-digit, year-over-year growth and nearly 80 percent gross margins last year, will become a wholly-owned subsidiary of Intel, reporting into Intel’s Software and Services Group. The group is managed by Renée James, Intel senior vice president, and general manager of the group.

Watch the video interview with McAfee’s CEO and senior vice president of software and services group.

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