Intel has acquired security software firm McAfee in an all cash deal of $7.68bn.
The chip manufacturing company has said that it needs McAfee to help it integrate security into its microprocessors and chipsets.
The deal gives Intel a wide range of consumer and enterprise security products. Of late, Intel has started to look increasingly to the growing smartphones and other handheld devices.
Intel said both companies believe the current approach to security does not adequately address the billions of new Internet-ready devices, including PCs, mobile devices and ATM machines.
The company said, "With the surge in cyber threats, providing protection to a diverse online world requires a fundamentally new approach involving software, hardware and services."
The deal was first announced in August 2010. Since then, Intel had been working to get the deal approved by US and European Union regulators.
Intel had to offer concessions to the European Union (EU) antitrust authorities in order to seek clearance for the purchase of the security software company.
EU authorities were concerned that the deal could give McAfee technology an unfair advantage, considering Intel controls more than 80% the world’s processor market. Among the concerns was the possibility that the new security-enabled chips might have features which only McAfee software could take advantage of.
McAfee is the second-largest security software company in the world after Symantec.
As part of the acquisition, McAfee will be a wholly-owned subsidiary of Intel, reporting into Intel’s Software and Services Group. McAfee’s president Dave DeWalt will report to Intel senior vice-president and general manager Renée James.
Intel CEO Paul Otellini has said that the company would continue with McAfee’s existing business model, sales practices, products and branding.
The first products after the new partnership are likely to hit the stores late this year.
