Intel, the largest microprocessor manufacturer in the world, shook the IT security industry last
week by buying McAfee, a security software company, in a $6.78B deal, the biggest deal yet
for the company. Intel says that the acquisition will enable the company to better secure the
increasing number of devices connected to the Internet.
Senior research analyst at Gartner, Ruggero Contu, says that the move by Intel was surprising
because there were other companies that he thought would have better synergies with McAfee.
Intel paid $48 per share vs. the actual price of $29.93 per share of McAfee, a 60 percent
premium paid apparently to ensure Intel seals the deal. Other players may have been involved.
Analyst Tristan Gerra with Robert W. Baird & Co. said the deal targets rising security concerns
among manufacturers of devices that uses microprocessors and gives Intel “significant security
advantages” over its competitors who need to engage third party security vendors.
The connectivity of devices that started to become a necessity in many business applications
may eventually spread to devices used at home and cars. In the next 10 years, security of
connected devices will be near the top of the list of features that customers will be looking for.
Intel is clearly preparing for the future.
Sources:
http://news.yahoo.com/s/ap/20100819/ap_on_hi_te/us_intel_mcafee_acquisition
http://www.engadget.com/2010/08/19/intel-acquires-mcafee-for-7-68-billion/
http://www.readwriteweb.com/enterprise/2010/08/securing-the-internet-of-thing.php