The recent rash of mergers and acquisitions, perhaps illustrating an upturn in the economy, shows no signs of abating with Intel, the world’s largest microchip manufacturer, agreeing to buy the security technology company McAfee, for $7.68bn (£4.95bn). MasterCard is also getting in on the act with a deal to purchase DataCash for £333m as it targets the online e-commerce payments market, while HP has launched a £1bn bid for data storage vendor 3Par.

Intel Corporation has entered into a definitive agreement to acquire McAfee, in a cash-based deal worth almost £5bn. It will purchase of all of the company’s common stock at $48 (£31) per share. Both boards of directors have unanimously approved the deal, which is expected to close by year end after McAfee shareholder approval, regulatory clearances and other customary conditions specified in the agreement.

According to Intel the acquisition is intended to increase its security services offering, reflecting the fact that security is now an essential part of online computing, on a par with internet connectivity and energy efficient performance in what it sees as the ‘three pillars’ of computing requirements.

It added that today’s security approach does not fully address the billions of new Internet-ready devices coming on stream, including mobile and wireless devices, TVs and ATM machines, and the accompanying surge in cyber threats that they represent. Providing protection to a diverse online world requires a fundamentally new approach believes the company, involving software, hardware and services.

“With the rapid expansion of growth across a vast array of Internet-connected devices, more and more of the elements of our lives have moved online,” explains Paul Otellini, Intel president and CEO. “In the past, energy-efficient performance and connectivity have defined computing requirements. Looking forward, however, security will join these as a third pillar of what people demand from all computing experiences.

“The addition of McAfee products and technologies into the Intel computing portfolio brings us incredibly talented people with a track record of delivering security innovations, products and services that the industry and consumers trust to make connecting to the Internet safer and more secure,” Otellini added.

McAfee, which has enjoyed double-digit, year-over-year growth and nearly 80 percent gross margins last year, will become a wholly-owned subsidiary of Intel, reporting into Intel’s Software and Services Group. This Group is presently managed by Renée James, Intel senior vice president, and general manager, who will take responsibility for the new acquisition.

• MasterCard is entering into an agreement to buy DataCash Group, a European payment service provider, at a price of 360 pence per share in cash, representing a deal value of approximately £333m. DataCash offers a single interface that provides e-commerce merchants with the ability to process secure payments across the world. The primarily European-based payment service provider offers outsourced electronic payments solutions, fraud prevention, alternative payment options, back-office reconciliation and solutions for merchants selling via multiple channels. The company also has fraud solutions and a robust technology platform.

In 2009, DataCash processed more than 240 million transactions for more than 1,400 merchants in a variety of sectors, including retail, travel and leisure, entertainment, gaming and telecommunications. For the year ended December 31 2009, DataCash reported revenue of £36.9m. It employs 362 people worldwide with operations in London, Dublin, Mannheim and Cape Town.

MasterCard believes the acquisition of DataCash will create a long-term growth platform, providing the company with the ability to:

– Drive the growth of the e-commerce category in concert with MasterCard’s acquiring customers, thus increasing the use of MasterCard-branded credit and prepaid products, as well as MasterCard and Maestro-branded debit products, for online purchases – particularly in Europe and other markets;

– Expand and enhance MasterCard’s MiGS gateway business currently operating in the Asia Pacific region, enabling merchants to gain new market reach and access to value-added services;

– Leverage MasterCard’s network and global presence to more rapidly drive the global expansion and adoption of DataCash’s products and services beyond Western Europe where a majority of DataCash’s business is conducted today;

– Combine DataCash’s and MasterCard’s fraud capabilities and expertise resulting in ‘end-to-end’ fraud screening and management services; and

– Expand DataCash’s platform and launch MasterCard’s new generation of e-commerce, mobile commerce and other payment products, enabling merchants to quickly accept these new forms of payments with minimal integration challenges.

“E-commerce represents an important part of MasterCard’s growth strategy, and this acquisition will allow us to provide new services to our acquiring customers, as well as drive increased e-commerce penetration in both existing and new markets,” said Ajay Banga, MasterCard president and chief executive officer. “The acquisition of DataCash will expand our already significant e-commerce merchant gateway presence in Asia and Australia to European countries and other high-growth, emerging markets worldwide.”

The deal is expected to complete by the end of October 2010.

• In other news, HP is bidding $1.6bn (£1bn) for data storage firm 3Par in an attempt to supplant a $1.2bn bid made by rival company Dell in mid-August. Both firms want to move into more profitable areas, away from making and selling computers and see the storage vendor as a good way of doing this, especially as it has synergies for the growing cloud computing market, where data servers are accessed over the internet. If its higher offer is accepted HP is confident the deal could close by year end.

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