This move comes as a bit of a surprise, as some analysts and investors believe the acquisition shows the importance that computing firms are applying to security. Intel noted that more "elements of our lives have moved online," meaning that security will become a "third pillar of what people demand from all computing experiences." Intel said that the deal "elevates focus on security on par with energy-efficient performance and connectivity." Bottom line: Intel wants to protect customers who are taking advantage of our new online lifestyle.
Intel paid $48 per share in cash to McAfee shareholders, which represents a 60% premium over McAfee's Wednesday closing price. Intel noted that the deal should be slightly dilutive to earnings during the first year of operations, then flat in the second year. Intel added that excluding a one-time write-down on deferred revenue after the deal closes along with amortization, the deal will slightly increase earnings in the first year and will then improve in the coming years.
Predictably, shares of Intel dropped after the announcement and shares of McAfee advanced to the $48 region. What's more, the tech sector tried to stem the negative tide on the Street Thursday -- unfortunately the battle was a bit too much for the sector to handle.