Microchip maker Intel is to buy McAfee, which provides security for computers. It is its biggest ever acquisition.
The price is just under six billion euros in cash; that means it will pay 60 percent more for each McAfee share than the closing price on Wednesday.
The boards of both companies have unanimously approved the deal.
Analysts said the deal showed Intel’s willingness to move from hardware to software and services
McAfee has been working with Intel on a number of projects in the last 18 months.
The chipmaker said that partnership made it realise how combining the two firms would be a very powerful way to bringing enhanced security to its customers as it tries to move beyond its main market of personal computers and into such areas as mobile phones.