According to the computer chip maker, the deal includes the purchase of all McAfee shares priced at $48 per share.
The acquisition has been agreed by both boards of directors although it is still subject to regulatory and shareholder approval.
Following the completion of the deal, McAfee will become a subsidiary of Intel and will report to the Software and Services division of the group.
Paul Otellini, Intel president and chief executive officer (CEO), said: âIn the past, energy-efficient performance and connectivity have defined computing requirements. Looking forward, security will join those as a third pillar of what people demand from all computing experiences.â
In the statement, the firm also explained that the acquisition reflects how security has become âa fundamental component of online computingâ.
Dave DeWalt, president and CEO of McAfee, added: âWe believe this acquisition will result in our ability to deliver a safer, more secure and trusted Internet-enabled device experience.â
McAfee made an estimated $2 billion in revenue during 2009.
By Jim Ottewill