Intel Acquisition McAfee Transaction Value 7.68 Billion U.S. Dollars

Intel said the acquisition will integrate security software and hardware, services, and thus greatly enhance the individual users, businesses and government facilities, servers and network security. Industry insiders believe that the acquisition underscores the Intel PC market in the lead after the increasingly want access to other areas.

Intel, 19, announced that it will buy security software maker McAfee, involved in the transaction amount is about 7.68 billion U.S. dollars. Intel said it will be 48 dollars per share in cash to buy all the common shares of McAfee, said that both sides of the board of directors has unanimously approved the transaction. Also, Intel out of the purchase price over the previous trading day closing price of the 60% premium. Local morning, Intel shares fell 2.86 percent reported 19.03 U.S. dollars, while McAfee shares surged 57.90% reported 47.26 U.S. dollars.

Need security software supporting Intel hardware

It is reported that, McAfee was established in 1987 and headquartered in California SantaClara, there are about 6100 employees, 2009 revenues of 20 billion dollars, over the past 18 months and Intel to cooperate in different projects.

Intel’s acquisition surprise to many analysts, because it is a chip maker and a software company in the marriage. But some analysts point out that this just highlights, such as Intel continues to smart phones and other mobile devices and popular PC market expansion outside of the determination. Other analysts further noted that for now, the greatest benefit transaction may be Intel’s software can be sold to McAfee PC customers, as Intel has already occupied the PC microprocessor market share of about 80%.

With Intel own words, “the company identified the combination of the two companies will produce a high level of computer security market, strong competitive forces”, Intel Software and Services Team Leader ReneeJames so in an interview said. Intel executives said the acquisition “should focus on energy efficiency and Internet connectivity at the same time, raise all use Intel chips, the safety of products,” particularly in the mobile wireless products.

Intel side also said the company’s security services not covered by mobile phones, television, ATM and other network connected devices for security vulnerabilities.

The acquisition will integrate security software and hardware, services, and thus greatly enhance the individual users, businesses and government facilities, servers and network security. FBR Capital analyst Ives also said that Intel and McAfee deal, “dramatically change the pattern of security software, also witnessed numerous technology integration in the enterprise environment.”

No timetable for acquisition of the first year after the merger or reduced profit

“Obviously, the current investors will not like this acquisition, especially in the case of such a high premium,” Wedbush Securities analyst PatrickWang said, “from a strategic point of analysis, I think is meaningful. Discussed viruses and spyware, for computer users, security is becoming an important consideration. ”

The deal’s consultant for Goldman Sachs, Intel, McAfee’s consultant for Morgan Stanley. Intel said the acquisition is complete, McAfee will continue to operate a wholly owned subsidiary and report directly to Intel’s software and services reported. But Intel did not give a clear timetable for the acquisition. Intel is expected, affected the first year after the merger, profits will be slightly reduced.

Intel had bought the software company’s history, including 884 million U.S. dollars acquisition of Wind River Systems and the 110 million U.S. dollars acquisition of Irish software companies Ha Woke. The acquisition will be slightly diluted in the first year, Intel’s earnings, second year of the flat. Preclude completion of the transaction on the write-off arrears of revenue and the acquisition after the amortization of intangible assets, the company said, after adjustments for the acquisition would slightly increase the income of the first year, and has improved.

Also worth noting is that McAfee’s acquisition of Intel on the recent spate of mergers and acquisitions in the technology industry, the latest one, earlier this week, Dell has just announced a 1.3 billion acquisition of the data storage company 3PAR.

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