Intel has agreed to buy internet security software provider McAfee for USD 48 per share cash, or a total USD 7.68 billion. Intel said the growing number of internet-connected devices requires a new approach to security, integrating software, hardware and services. The chipmaker said it has raised security to a new level of strategic priority in its business to deliver a better computing experience, on par with energy efficiency and internet connectivity. The takeover forms part of its recent string of acquisitions focusing on "software that takes advantage of silicon". McAfee will become a subsidiary reporting to Intel's Software and Services Group. McAfee's board has approved the deal, which remains subject to shareholder and regulatory approvals. Intel expects the acquisition to be slightly dilutive to earnings in the first year of operations and approximately flat in the second year. On a non-GAAP basis, excluding a one-time write down of deferred revenue when the transaction closes and amortization of acquired intangibles, Intel expects the combination to be slightly accretive in the first year and improve beyond that.
