The world’s largest microchip manufacturer – Intel Corporation has entered the final round of negotiations to purchase all outstanding shares of McAfee at a price of $48 per share. The managements of both companies have approved the agreement.
With the acquisition of McAfee, Intel has announced the largest acquisition in its 42-year history. Following the announcement, McAfee’s shares rose by 58 percent to $47.40, while Intel’s stock fell by two percent to $19.19. Intel believes that security has become an essential element of the computing industry. However, today no one is adequately addressing security with a range of new internet devices on the market, such as mobile devices, televisions, cars, ATMs, and medical devices, according to Intel. With this acquisition, Intel aims for a new approach to security that will integrate software, hardware, and services. “With the rapid expansion and growth of numerous Internet-connected devices, more and more elements of our lives have moved online,” said Intel CEO Paul Otellini.
HP Acquires Fortify Software
Hewlett-Packard Co. has acquired security tools provider Fortify Software Inc. to incorporate their security system into its own application development portfolio. The terms of the agreement are not public. Fortify Software Inc. sells a suite of tools used in the early development of applications. Since HP was already in partnership with Fortify, this sequence of events was expected, especially after IBM acquired Ounce Labs, another security tools provider, last year. HP will retain Fortify’s workforce led by the three founders (Roger Thornton, Michael Armistead, and Brian Chess). (www.cert.hr)
By integrating McAfee’s core technology, Intel claims it can enhance existing products and offer new, even better ones that will be used online for business and personal purposes. Intel sees this acquisition as an opportunity for its new wireless strategy. “Security that will further enhance hardware will lead to a shift in effectively countering increasingly sophisticated threats today and tomorrow,” believes Renee James, Intel’s senior vice president. “A significant increase in the number of various connected devices is expected, from today’s approximately one billion to about 50 billion in the next 10 years,” said company CEO Dave DeWalt. Such enormous growth will greatly impact new business opportunities in communications and commerce. At the same time, it opens up opportunities for cybercrime to exploit the weaknesses of open network architecture. This poses a risk to users and threatens the future of the internet. “Addressing the next generation of internet security is a key reason and motivation for Intel and McAfee to join forces,” said DeWalt. The agreement awaits approval from McAfee’s shareholders and regulatory agencies, and Intel hopes to complete the deal before the end of the year. After acquiring ownership of McAfee shares, McAfee will continue to operate as an independent subsidiary related to Intel’s software and services across the Group. (M.N.)
