Intel has agreed to purchase of all of McAfee's common stock for US$48 per share in cash, which works out to a whopping $7.68 billion. As both Intel's and McAfee's boards of directors have unanimously approved the deal, it should close without a hitch after McAfee shareholder approval, and other points arising in the agreement have been satisfied.

Afterwards, McAfee will operate as a wholly owned subsidiary, reporting into Intel's Software and Services Group.

Intel's $8-billion investment underscores the notion that moving forward, the connected universe will grow exponentially and with it, the risk and incidence of "cyber crimes" and malicious viruses.

Intel adds that immunity from cyber attacks will be increasingly important for anyone engaged in online activity, and that yesteryear's security measures are no longer sufficient.

"The current cybersecurity model isn't extensible across the proliferating spectrum of devices; providing protection to a heterogeneous world of connected devices requires a fundamentally new approach to security," says a release on the McAfee Web site. "Frankly, the industry needed a paradigm shift: incremental improvements simply couldn't bridge the opportunity gap. McAfee and Intel Corporation are joining forces to tackle this next generation cybersecurity issue which impacts everyone and anything connecting to the Internet."

"In the past, energy-efficient performance and connectivity have defined computing requirements," notes Paul Otellini, Intel President and CEO. "Looking forward, security will join those as a third pillar of what people demand from all computing experiences."

Intel's Software and Services Group Sr. V.P. & G.M., Renée James, has stated that hardware-enhanced security will lead to breakthroughs in effectively countering "the increasingly sophisticated threats of today and tomorrow."

In other words, McAfee and Intel working in unison under the same roof should yield more sophisticated and potent strategies to combat cyber threats.

"McAfee is the next step in this strategy, and the right security partner for us," she added. "Our current work together has impressive prospects, and we look forward to introducing a product from our strategic partnership next year."

McAfee, based in Santa Clara and founded in 1987, is the world's largest dedicated security technology company with approximately 6,100 employees and approximately US$2 billion in revenue in 2009.

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