at about 7.7 billion US dollars.

Both boards of directors have approved the deal, and McAfee is expected to become a subsidiary

within Intel's Software and Services Group. Intel said that the current approach to security

does not address the full range of Internet-connected devices, including TVs, cars, medical devices

and ATM machines.

Renee James Senior VP, Intel

"Security is really important across our existing businesses, both in the data center and the

connection through the network from the data center cloud, as well as obviously in your

PC. And as the PC market continues to expand, continues to be a great business, security

is increasingly a consideration for all users."

Intel's move will help to bridge the gap across a wide range of mobile devices, an industry

continuing to expand with the popularity of tablets and smartphones.

Dave DeWalt CEO, McAfee

"Connected devices are exploding as the movement of the new internet from IPv4 to IPv6 changes,

we're going to trillions of devices over time and security is really important as a part

of that."

The deal is expected to close after McAfee shareholder approval and regulatory clearances.

McAfee generated approximately $2 billion in revenue in 2009, and has about 6,100 employees.

With reporting by Jeremy Kirk, I'm Justin Meisinger, IDG News Service.