Intel buys McAfee for $US7.68 billion

Hardware vendor Intel has acquired security firm McAfee in a move that may result in a market monopoly by the industry giant.

The deal sees McAfee become a wholly-owned subsidiary of Intel with Intel's president and CEO, Paul Otellini, saying the move adds more talent to the Intel family.

"The addition of McAfee products and technologies into the Intel computing portfolio brings us incredibly talented people with a track record of delivering security innovations, products and services that the industry and consumers trust to make connecting to the Internet safer and more secure," Otellini said.

President and CEO of McAfee, Dave DeWalt, said the capability of the security industry will be enhanced thanks to the acquisition.

“The agreement for Intel to acquire McAfee is big news for McAfee and big news for Intel, but bigger news for our combined customers, the security industry and the future of the Internet.”

Principal analyst at Ovum, Graham Titterington, said the move may result in a monopoly on Intel's core markets.

"We can assume that Intel's objective is to incorporate more security features into its chips. For users, and for businesses, this will be welcome, but clearly there is a risk of monopolistic concerns damaging the market," he said.

Click here for more coverage on the multi-billion dollar takeover.

Copyright © 2010 IDG Communications, Inc.

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