8/19/2010 10:02 AM
by Ashlee Vance
Intel, the chip maker, has turned into Intel, the security specialist.
Making one of most eye-catching moves in its 42-year history, Intel announced Thursday that it planned to acquire McAfee for $7.68 billion in cash.
Under the terms of the deal, Intel will pay $48 a share in cash, a 60 percent premium over McAfee’s Wednesday closing stock price of $29.93.
The deal makes Intel a major player in the security software and services market. As such, Intel will shed some of its identity as a component supplier and climb higher up the technology food chain.
Intel expects the market for security technology to grow as electronic gadgets and things like cars and home appliances increase their computing power and tap into the Internet.
Analysts expect that many of the tools that McAfee provides today may be built-in to chips and devices over time.
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