Intel to acquire McAfee for $7.7 billion

Computer chip maker Intel revealed it had reached a deal to buy anti-virus software firm McAfee for $7.68 billion.

Intel, which has offices across the UK, including sites in Swindon, Wiltshire, and Borehamwood, Hertfordshire, will pay $48 a share for McAfee, almost 60 per cent higher than its closing price before the deal was announced.

Intel, the world’s largest computer chip maker, said the deal, which is subject to McAfee shareholder approval, highlighted “that security is now a fundamental component of online computing”.

The California-based firm said the deal will hurt earnings slightly in the first year as the companies are combined, but it predicts the deal will slightly boost earnings the following year.

McAfee, also California-based, is one of the world’s largest security companies with about $2 billion in revenue last year.

Intel has made a series of recent software acquisitions including companies that specialise in gaming, visual computing, embedded device and machine software.

Last month, Intel reported its largest quarterly net income in a decade as the chipmaker benefited from a stronger computer market and more sophisticated factories.