McAfee puts a virtual padlock on IT resources. The company sells network security products that protect computers, networks, and mobile devices. Its software and hardware are used to guard against viruses, spam, and spyware, as well as to manage data loss prevention, mobile security, host intrusion prevention, encryption, and e-mail security. McAfee gets a significant portion of its sales from follow-up service, support, and subscriptions to its software and managed services. The company sells directly and through resellers to corporations and consumers mainly in the US; its largest international market is Europe, and it logs sales in Asia and Latin America. McAfee was acquired in 2011 by Intel for $7.68 billion.
While Intel has been expanding its software product line through acquisitions in recent years, the McAfee deal was its most significant investment into software. Intel's bought the company to expand its expertise in security products for mobile computing, ATMs, and Internet-connected devices, as well as to provide a broader package of secure hardware, software, and services to clients. McAfee became a wholly-owned subsidiary reporting to Intel's software and services group.
The acquisition came after another good year for McAfee. In 2010 the company enjoyed higher profits driven by double digit sales growth in both its core enterprise segment and consumer products businesses, as well as an uptick in sales of support services and subscriptions worldwide. Sales in North America led the way due to a boost from acquisitions made the previous year, while international sales slipped somewhat due to lower revenue from the corporate segment in Europe, the Middle East, and Africa, combined with the negative effect of unfavorable exchange rates on business done in Asia and Latin America during 2010. Overall McAfee's sales and profits have been on the rise for the past decade.
The company's products span the spectrum from PC systems targeted at individual consumers to enterprise-grade network security offerings. McAfee's internal product development efforts have included the release of Web-based versions of many of its products, upgrading its consumer security software lines, and developing new complementary services such as its McAfee Online Backup data protection service. Its products are sold directly to consumers and enterprises as well as through its network of strategic partners and resellers such as Dell, Lenovo, and Adobe. Trial versions of McAfee's consumer software often comes pre-installed on PCs manufactured by partners or bundled with other third-party software products.
The company also used acquisitions to expand its product line, adding new technologies and capabilities that address the increasingly complex security threats that networks and computers face, particularly as use of mobile computing products increases.
McAfee bought enterprise firewall security firm Stonesoft (based in Finland) in mid-2013 for nearly $400 million. It plans to use the purchase to extend its leadership in network security. The company also acquired database security and monitoring software maker and partner Sentrigo in 2011. That deal added a set of applications designed to guard against database intrusions from the Web and complemented McAfee's existing risk and compliance tools. That year it also bought another of its partners, NitroSecurity, whose technologies would be incorporated into McAfee's ePolicy Orchestrator product and expands the company's risk and compliance and global threat intelligence coverage.
The previous year McAfee bought InternetSafety.com for $10.7 million and tenCube, a provider of mobile security services, for $10.6 million. tenCube's WaveSecure service was used by consumers to remotely control and manage data on smart phones and other mobile devices. McAfee also acquired Trust Digital for $32.5 million in 2010 to add business security management technology for mobile devices into its own product line.