Intel will purchase all of McAfee’s stock
Ashok Kumar, analyst for Rodman & Renshaw, said the merger will make Intel more competitive in the face of rivals such as Qualcomm, a company specializing in wireless communications technology.
“Given [Intel's] position in the ecosystem, it behooves them to have the expertise and domain knowledge in all the three key vectors,” said Kumar, referencing Otellini’s statement about the three pillars: energy efficiency, connectivity and security.
Kumar said the Intel-McAfee merger might prompt Qualcomm (QCOM, Fortune 500) to bolster its position in the market by pursuing a similar deal.
The deal has been approved by boards of directors at both companies, and must be approved by McAfee shareholders and government regulators for it to become final.
“In the past, energy-efficient performance and connectivity have defined computing requirements,” said Intel Chief Executive Paul Otellini. “Looking forward, security will join those as a third pillar of what people demand from all computing experiences.”
Intel Corp., the world’s largest chipmaker, said Thursday it has agreed to acquire security software maker McAfee for $7.68 billion. Intel (INTC, Fortune 500) said it will purchase all of McAfee’s stock for $48 per share in cash. McAfee’s stock surged 58% at the start of trading. Intel stock slipped 2%. Both companies are based in Santa Clara, Calif. CNNMoney.com reported
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Posted by daler
on Aug 19 2010. Filed under Featured Technologies, Software.
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