CALIFORNIA: Chip maker Intel Corp said Thursday it agreed to buy security technology firm McAfee Inc for about $7.68 billion in cash in an effort to boost its security offerings.

Under the terms of the deal, Intel said it would pay $48 per share in cash for McAfee, which would become a wholly owned subsidiary of Intel's software and services group. The price is a 60 percent premium to McAfee's Wednesday closing price.

Intel said it expects the deal would slightly reduce net earnings in the first year, although on a non-GAAP basis it is expected to help profit slightly. McAfee was founded in 1987 and had about $2 billion in revenue in 2009.