Intel has bought information security specialist McAfee in a surprise deal valued at $7.68bn.
The chip maker has offered $48 a share in cash for the anti-virus firm, a 62 per cent premium of McAfee's Wednesday closing price of $29.93 a share. Shares in McAfee leapt 58 per cent on the news while Intel's stock dipped.
Both boards of directors have approved the deal, which is still subject to McAfee shareholder approval and regulatory approval.
Intel said the deal signalled its decision to put security on par with energy-efficient performance and internet connectivity as a strategic focus area.
"Today's security approach does not fully address the billions of new Internet-ready devices connecting, including mobile and wireless devices, TVs, cars, medical devices and ATM machines as well as the accompanying surge in cyber threats," it said.
McAfee is a solid but unspectacular second behind Symantec in the security software market. It booked $2bn in revenues last year. ®