Anyone holding shares of McAfee (NYSE: MFE) on August 19th are bound to be rubbing their hands with glee. McAfee’s stock price just hovered over it’s 52-week low at $29.93 on August 18th and rocketed up 60 percent to nearly $48, the cash price per share Intel (NASDAQ: INTC) agreed to acquire the company for.
McAfee will operate as a wholly-owned subsidiary, reporting to Intel’s Software and Services Group. The companies, both headquartered in Santa Clara, CA, said that the acquisition, Intel’s biggest ever, enables a combination of security software and hardware from one company to ultimately better protect consumers, businesses and governments.
Paul Otellini, Intel’s CEO said: “With the rapid expansion of growth across a vast array of Internet-connected devices, more and more of the elements of our lives have moved online. In the past, energy-efficient performance and connectivity have defined computing requirements. Looking forward, security will join those as a third pillar of what people demand from all computing experiences.”
McAfee’s security software generated $2 billion in revenue last year while Intel, just a few weeks ago reported the best quarter in the computer chip-maker’s 42-year history: net income was $2.9 billion on revenues of $10.8 billion.
Symantec, the biggest maker of security software worldwide and McAfee’s strongest competitor, recently bought VeriSign’s Internet security and SSL business for $1.28 billion in May 2010.
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