Chip maker Intel Corp said on Thursday it is buying computer-security software maker McAfee Inc for $7.68 billion,or $48 per share. The per-share price represents a 60% premium over McAfees Wednesday close of $29.93. McAfee shares surged 58% after the deal was announced on Thursday to hit $47.42 in pre-market trading. Intel shares slipped 2.5% to $19.11.
Intel,which is based in Santa Clara,California,said the deal highlights that security is now a fundamental component of online computing.
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, Intel CEO Paul Otellini said. 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 said the deal with hurt earnings slightly in the first year the companies are combined. Excluding costs and other one-time items related to the acquisition,Intel predicts the deal will slightly boost earnings next year and improve after that.
Both boards of directors have unanimously approved the deal.