Santa Clara, Calif. - Intel announced this morning it is buying Internet security software maker McAfee for $7.7 billion.
The deal has received approval of both company's boards and is expected to close after it receives approval from McAfee's shareholders and regulatory clearances.
Intel said the acquisition reflects the growing need for computer security, particularly among the many new Internet-ready mobile and wireless devices.
McAfee will become a wholly owned subsidiary of Intel, and it will report to Intel's software and services group.
"Hardware-enhanced security will lead to breakthroughs in effectively countering the increasingly sophisticated threats of today and tomorrow," said RenÃ©e James, Intel senior VP/GM of the software and services group.