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Intel Buys Stonesoft for McAfee

The deal is expected to close sometime in early July

Intel security unit McAfee, the semiconductor's largest acquisition ever, is buying Stonesoft Oyi, a Finnish company founded in 1990 that's got next-generation network firewalls. It's paying $389 million cash.

That's a 128% premium to the outfit's closing price on May 3 or $5.90 (€4.5) a share.

Intel, which says it's been looking for a better firewall solution and evasion-prevention widgetry for some time to ward off cyber-attacks, expects the market to be worth over $4 billion by 2016.

CEO Ilkka Hiidenheimo, who owns 16.3% of the company and will make $61.5 million on the deal, claims Stonesoft+McAfee will offer "a 360-degree solution."

The Finnish government may have something to say about the proposed acquisition because it uses the software for security purposes.

Intel paid $7.7 billion for McAfee in early 2011, and McAfee did $2.2 billion in revenues last year.

Stonesoft will stay where it is and Hiidenheimo will stay with the company.

The deal is expected to close sometime in early July. Stonesoft has about 265 people and a jagged financial track record.

More Stories By Maureen O'Gara

Maureen O'Gara the most read technology reporter for the past 20 years, is the Cloud Computing and Virtualization News Desk editor of SYS-CON Media. She is the publisher of famous "Billygrams" and the editor-in-chief of "Client/Server News" for more than a decade. One of the most respected technology reporters in the business, Maureen can be reached by email at maureen(at)sys-con.com or paperboy(at)g2news.com, and by phone at 516 759-7025. Twitter: @MaureenOGara

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