Intel plunges into security business by acquiring McAfee
In the wake of growing cyber crime; security in the cyber arena has become all the more important. When a person buys a new computer, it seldom happens that the new computer comes without a security-software; and if it does, the customer is requested right away to get one installed in case he’s going to be an earnest internet user.
And when security has such an important part to play; organisations can always bank upon the revenue producing capability of a security-software. Intel, the most coveted processor producing company is all set to take over McAfee (the largest dedicated security technology company) for approximately $7.68 billion. Diversification; either in-house or by takeovers and mergers has always been one of the most sought after techniques of improving business. Let’s see what this deal will have in store.
Intel Corporation has come into an agreement with McAfee Inc.; to purchase all of the company’s common stock at $48 per share in cash. Buying all the shares at that price will amount to a whopping $7.68 billion. The Board of Directors of both the organisations had unanimously reached a consensus and approved the deal which shall be closed once the shareholders of McAfee have approved and all the mandatory conditions of a takeover has been fulfilled. McAfee then shall become a wholly owned subsidiary of Intel.
The main idea behind the deal was to provide the global community with better protection in the area of online computing by adopting a fundamentally new approach involving software, hardware and services. Also Intel has put the issue of security at the same priority level as the rest of its strategic focus areas in energy efficient performance and online connectivity.
With the takeover, Intel will be benefitted with the inclusion of some very talented people who have so far contributed by security innovations, products and services which the industry and consumers have trusted to make their experiences with Internet much safer. The deal is hoped to be very helpful because the security issue is in sync with the basic goal of Intel; which is to provide an outstanding computing experience in fast growing business areas, especially around the move to wireless mobility.
Intel hopes to bring out a new security product next year from its strategic partnership. With this collaboration; Intel and McAfee will jointly explore concepts to further strengthen the security in the cloud network and a plethora of computers and others devices that people use in their daily lives.
The deal sure does sound promising enough given the times when the security in online computing can’t be given a backseat. However, as far as the effect of the deal on Indian market is concerned, it’s unlikely that we’ll see any implications here. Indian domestic market has too many players and Indian market being extremely price sensitive needs to be watched out carefully to know the pros and cons of the deal.
Ritika Kharbanda/ Itvoir network
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