Intel in shock $8bn swoop for McAfee

Intel's McAfee buy is the largest takeover in its history

In a shock move, Intel has announced plans to buy security heavyweight McAfee for $7.68bn (£4.9bn) after both boards of directors unanimously approved the deal.

The acquisition works out at around $48 (£30) per share, and McAfee will operate as a wholly owned subsidiary within Intel's Software and Services Group.

Intel chief executive Paul Otellini stated that the purchase is designed to improve the firm's security offerings at a time when customers are more concerned than ever about the security implications of working online.

"In the past, energy efficient performance and connectivity defined computing requirements. Looking forward, security will join those as a third pillar of what people demand from all computing experiences," he said.

"The addition of McAfee products and technologies brings us incredibly talented people with a track record of delivering security innovations, products and services that consumers trust to make connecting to the internet safer and secure."

General manager of Intel's Software and Service group, Renée James, added that the move would specifically help the firm provide security for the growing shift to wireless connectivity.

McAfee chief executive Dave DeWalt said that the deal will allow the two companies to work together on defending against ever increasing threats in the online world.

"The cyber threat landscape has changed dramatically over the past few years, with millions of new threats appearing every month," he said.

"We believe this acquisition will result in our ability to deliver a safer, more secure and trusted internet-enabled device experience."

McAfee generated $2bn (£1.2bn) in revenue in 2009, and has around 6,100 employees, making it the world's second largest IT security company behind Symantec.