Intel's $7.68bn McAfee Purchase Complete: "Entirely New" Security System Promised

Intel has completed its acquisition of McAfee, promising "the first fruits" of the strategic partnership later in 2011. Although the exact nature of the new products is unknown, it's said to be a combination of software – like traditional anti-virus and malware protection – hardware and services.

As Ben Bajarin suggested back in August 2010 when the deal was first announced, such a strategy will allow Intel to load in extra protection for embedded devices, including Atom-based STBs like the Logitech Revue. It may also reduce system load, by offsetting anti-virus protection to dedicated silicon. McAfee will continue to sell its own security products and services using the existing brand.

Press Release:

Intel Completes Acquisition of McAfee

SANTA CLARA, Calif., February 28, 2011 – Intel Corporation today announced the acquisition of McAfee, Inc. is complete.

McAfee will continue developing and selling security products and services under its own brand. Intel and McAfee plan to bring the first fruits of their strategic partnership to market later this year, with the intent of tackling security and the pervasive nature of computing threats in an entirely new way.

Intel and McAfee believe today's approach to security does not adequately address the billions of new Internet-ready devices, including PCs, mobile and wireless devices, TVs, cars, medical devices and ATM machines. With the surge in cyber threats, providing protection to a diverse online world requires a fundamentally new approach involving software, hardware and services. Together the two companies will work to help people more securely take full advantage of the potential of computing and connectivity.

As a wholly-owned subsidiary of Intel, McAfee reports into Intel's Software and Services Group. The group is managed by Renée James, Intel senior vice president, and general manager. McAfee's president, Dave DeWalt, will report to James.

"In the past, energy-efficient performance and Internet connectivity have defined computing requirements," said James. "Intel has added security as a third pillar of what people demand from their experiences with personal computers and other connected devices. Security challenges put the future potential of computing at risk. The acquisition of McAfee adds not only world-leading security products and technologies to Intel's computing portfolio, but also brings incredibly talented people focused on delivering products and services that help make connecting to the mobile Internet safer and more secure."

Intel's updated Business Outlook for Q1 2011 and full year 2011, published on January 31, 2011, reflected the impact of the closing of the McAfee transaction. The press release, including the Outlook and related risk factors, can be found at http://sec.gov/Archives/edgar/data/50863/000005086311000020/exh991.htm.