Intel's chief executive told that the deal was the largest in the company's 42 year history. Intel will pay $48 per share in cash for McAfee and it will become a wholly owned subsidiary of Intel's software and services group.
Intel's officials told that the boards of both companies had approved the deal and it expects it to close once it gains McAfee shareholder approval and regulatory clearance. They also told that acquisition of McAfee will help better incorporate security concerns into computers, mobile phones and cash machines.
"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 Paul Otellini, Intel's Chief Executive Officer.
"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," he added.
Market analysts reported that the acquisition of McAfee shows the willingness of Intel to move from hardware to software and services.