On Monday, Intel (NASDAQ:INTC) announced that it plans to acquire Stonesoft Oyj, a Finland-based developer of network security technologies.
The chip-making giant said it will pay $5.90 a share for Stonesoft, a 128% premium over the company’s last closing price. The all-cash deal, valued at $389 million, has the support of Stonesoft’s management and a block of major shareholders, Bloomberg notes.
Adding Stonesoft’s technology would allow Intel to bolster the network security features of its McAfee division. The company purchased McAfee for $7.7 billion about six years ago.
With high-profile hacking incidents rising steadily in recent years, and consumer concerns about identify theft growing, security software to protect computer networks in an increasingly competitive business. McAfee competes with Symantec (NASDAQ:SYMC), which provides its own suite of network security solutions.
In March, popular mobile service Evernote advised its 50 million users to change their passwords after its network was compromised by hackers.
A month earlier, Comcast‘s (NASDAQ:CMCSA) NBC.com website had to be cleansed of a malicious trojan computer virus after a cyber attack.
Shares of Intel were flat in Monday morning trading.