Intel Corp. agreed to buy McAfee Inc. for $7.68 billion, its biggest-ever acquisition, adding security software to its chipmaking arsenal.

McAfee investors will receive $48 a share in cash, Santa Clara, California-based Intel, the world’s largest chipmaker, said in a statement today. That’s 60 percent more than McAfee’s closing price yesterday. Both boards have unanimously approved the deal, Intel said.

The acquisition of McAfee, which trails Symantec Corp. in security software, will give Intel an advantage over other chip companies that must use outside security programs, said Hans Mosesmann, an analyst at Raymond James Associates in St. Petersburg, Florida. The deal also helps Intel expand beyond PCs as Chief Executive Officer Paul Otellini is trying to break into mobile handsets and grow in other portable devices.

“Their ability to be successful in the non-PC market, and even in the PC market, is going to depend more on system solutions, and security is becoming a really big deal,” said Mosesmann. “The security threats that are out there are not going away -- you could argue that they are going to get worse - - and having a tightly coupled hardware and software is a strategic advantage.”

Originally posted at Breaking Legal News. Please visit http://www.breakinglegalnews.com/.

RCN, the cable operator, said on Friday that it has agreed to sell itself to the private equity firm ABRY Partners for $1.2 billion, including debt, as the leveraged buyout industry continues to get back to business.

ABRY, a media and telecom specialist based in Boston, will pay $15 a share in cash, a 22 percent premium over Thursday’s closing price.

Private equity firms have been more active this year as they finally put their billions of dollars in untapped funds to use. Earlier this week, Bain Capital agreed to pay $1.63 billion to acquire a unit of Dow Chemicals, and last week CKE Restaurants reached an accord to sell itself to THL Partners for $928 million.
One of the main enablers for the upswing in private equity activity has been the opening up of the credit markets and the willingness of banks to lend to riskier transactions again. ABRY said that it has lined up financing from SunTrust Robinson Humphrey, General Electric’s GE Capital and Societe Generale, among other firms.

Shares in RCN, which provides cable TV and broadband services in the Washington, Philadelphia, New York City, Boston and Chicago areas, have risen about 185 percent over the past 12 months ended Thursday.

Originally posted at Breaking Legal News. Please visit http://www.breakinglegalnews.com/.