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Intel to acquire security specialist McAfee

McAfee, which has enjoyed double-digit, year-over-year growth and nearly 80 percent gross margins last year, will become a wholly-owned subsidiary of Intel, reporting into Intel’s Software and Services Group. The group is managed by Rene James, Intel senior vice president, and general manager of the group.

The acquisition augments Intel’s mobile wireless strategy, helping to better assure customer and consumer security concerns as these billions of devices connect. After the deal is through security could be built more broadly into computer chips and other hardware, creating products that are more resistant to attack. “We believe security will be most effective when enabled in hardware,” said Otellini.

It seems intel is agressively making acquisitions to prepare itself for its next level of growth. On Tuesday, it had announced that it is buying the cable business of Texas Instruments. All this points to the fact is that Intel now wants to go beyond its core business of making processors. Then there is Meego, the operating system Intel and Nokia are developing together for smartphones, tablets and netbooks. For Meego to take off, it’ll need to be secure. McAfee acquistion will make it quite easy for Intel now.

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