8-KAcquisitions & DispositionsRegulation FDExhibits & Filings

INTEL CORP 8-K Report, Acquisition Completed (Feb 28, 2011)

Filed February 28, 2011For Securities:INTC

Summary

Intel Corporation (INTC) has officially completed its acquisition of McAfee, Inc. on February 28, 2011, making McAfee a wholly-owned subsidiary. This significant transaction, valued at approximately $7.7 billion, was funded using Intel's existing cash and short-term investments, indicating a strong liquidity position. The acquisition involves a cash payout of $48.00 per share for McAfee common stock, with specific provisions for treasury shares, Intel-owned shares, and those subject to appraisal rights. Equity awards for McAfee employees, including restricted stock and stock options, have been converted into Intel equivalents, designed to retain key talent and align incentives post-acquisition. Investors should note that this move signals Intel's strategic intent to expand its security offerings and integrate them into its core semiconductor business, a key growth area for the company.

Key Highlights

  • 1Intel Corporation completed the acquisition of McAfee, Inc. on February 28, 2011.
  • 2McAfee is now a wholly-owned subsidiary of Intel.
  • 3The total value of the acquisition is approximately $7.7 billion.
  • 4The transaction was funded using Intel's existing cash and short-term investments.
  • 5McAfee shareholders will receive $48.00 in cash per share.
  • 6McAfee equity awards were converted into Intel stock-based awards.
  • 7This acquisition marks a significant expansion of Intel's security offerings.

Frequently Asked Questions

Intel's acquisition of McAfee is aimed at strengthening its position in the cybersecurity market and integrating security solutions into its hardware. This move allows Intel to offer more comprehensive and secure computing platforms to its customers.

The acquisition was funded entirely through Intel's cash and short-term investments, totaling approximately $7.7 billion. While this will reduce Intel's cash reserves, it is a strategic investment for future growth in the security sector, and the company's strong liquidity suggests it can absorb this.

McAfee shareholders are receiving $48.00 in cash for each share of common stock. For McAfee employees, existing stock options, restricted stock units, and performance units have been converted into equivalent awards denominated in Intel common stock, aligning their interests with Intel's future success.

The integration of McAfee's security technologies is expected to enhance Intel's product offerings by building security directly into its processors and platforms. This could lead to more integrated, secure, and powerful computing experiences for consumers and businesses.