The world's biggest chip maker, Intel, has agreed to buy the security technology firm, McAfee.
Intel will pay about $7.68bn (£5bn) in cash.
Under the terms of the deal, Intel said it would pay $48 per share in cash for McAfee, almost 60 per cent higher than its closing price on Wednesday.
Intel said the deal, which is intended to increase its security services, would slightly reduce net earnings in the first year.
A company statement said that the acquisition reflected that security was now a fundamental component of online computing.
It added that today's security approach did not fully address the billions of new internet-ready devices, including mobile and wireless devices, TVs, cars, medical devices and cash machines.
The president and chief executive of Intel, Paul Otellini, said in the past, energy efficiency and connectivity had defined computing requirements.
In future security would become the "third pillar" that people demanded.
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