Intel to buy McAfee in $7.68B blockbuster

Intel (INTC -- NASDAQ) said Thursday morning it has entered into an agreement to acquire McAfee (MFE -- NYSE) for approximately $$7.68 billion, based on a price of $48 per share.

McAfee will be a wholly-owned subsidiary of Intel, and sources say McAfee management is expected to stay in place.

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"With the rapid expansion of growth across an array of Internet-connected devices, more and more of the elements of our lives have moved online," said Paul Otellini, Intel president and CEO. He called security the "third pillar" along with energy-efficient performance and connectivity, that’s needed for industry and consumers to have trust in connecting to the Internet and making use of computing.

McAfee is expected to become a subsidiary of Intel’s Software and Services Group, managed by Renee James, Intel senior vice president and general manager. "This acquisition is consistent with our software and services strategy to deliver an outstanding computing experience in fast-growing business areas, especially around the move to wireless mobility," he said.

McAfee and Intel plan a briefing later today to discuss the buyout.

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