----- Forwarded message from Dave Farber <[email protected]> -----
Date: Thu, 19 Aug 2010 10:06:05 -0400 From: Dave Farber <[email protected]> Subject: [IP] Intel to Buy McAfee in $7.68 Billion Deal Reply-To: [email protected] To: ip <[email protected]> 0E6B663E-AB9B-11DF-9C23-A0B4AD0AF29E: Begin forwarded message: > From: Richard Forno <[email protected]> > Date: August 19, 2010 9:01:30 AM EDT > To: List Infowarrior <[email protected]> > Cc: Farber Dave <[email protected]> > Subject: Intel to Buy McAfee in $7.68 Billion Deal > > Intel to Buy McAfee in $7.68 Billion Deal > > By NATHAN BECKER > > http://online.wsj.com/article/SB10001424052748704476104575439180665843938.html > > Chip maker Intel Corp. agreed to pay $7.68 billion to acquire > computer-security software maker McAfee Inc. > > It will pay $48 for each share of McAfee, a 60% premium to Wednesday's > closing price. The stock last traded at that level in 1999. Shares of McAfee > jumped 58% to $47.40 premarket???they were down 28% the past year through > Wednesday???while Intel declined 2% to $19.19. > > In announcing the deal, Intel said current security doesn't fully address > mobile, television, ATMs and other Internet-connected devices. McAfee will > become part of Intel's software and services division. > > "With the rapid expansion of growth across a vast array of Internet-connected > devices, more and more of the elements of our lives have moved online," said > Intel President and Chief Executive Paul Otellini. "In the past, > energy-efficient performance and connectivity have defined computing > requirements. Looking forward, security will join those as a third pillar of > what people demand from all computing experiences." > > McAfee, best known for its widely popular antivirus software, has recently > said it was marshaling more strength to go after the quickly developing > mobile market, and it recently announced it was acquiring mobile-device > security company tenCube, a move that follows its purchase of Trust Digital, > another mobile-security-software firm. > > Meanwhile, technology companies have been putting some of their bulging cash > piles to work lately through acquisitions, suggesting they are taking > advantage of low valuations to build their product and service offerings. On > Monday, Intel said it would buy Texas Instruments Inc.'s cable-modem product > line for an undisclosed amount. > > The deals come as Intel last month reported its best-ever quarterly results > amid an ongoing rebound in the semiconductor space. For its part, McAfee's > second-quarter earnings rose 38%, allaying concerns about its business after > a weak first quarter. The company said sales grew sharply in North America, > one of its key markets. > > Both boards of directors have unanimously approved the deal. The deal still > requires McAfee shareholder approval and regulatory clearances. > > Intel expects the deal to slightly cut into earnings the first year after > closing because of merger-related charges and have little impact on the > bottom line in the second year. A slight increase after those charges are > seen in the first year. > > Intel and McAfee are both based in Santa Clara,Calif. > > Intel was advised on the deal by Goldman Sachs and Morrison & Foerster LLP. > McAfee was advised by Morgan Stanley and Wilson Sonsini Goodrich & Rosati. > > Write to Nathan Becker at [email protected] ------------------------------------------- Archives: https://www.listbox.com/member/archive/247/=now RSS Feed: https://www.listbox.com/member/archive/rss/247/ Modify Your Subscription: https://www.listbox.com/member/?member_id=125750&id_secret=125750-5bb6cf56 Unsubscribe Now: https://www.listbox.com/unsubscribe/?member_id=125750&id_secret=125750-6876700a Powered by Listbox: http://www.listbox.com ----- End forwarded message -----
