McAfee (MFE), the Intel-owned security specialist, offered to buy Finland’s Stonesoft Oyj for $389 million in cash to expand its security-software business.

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Chip maker giant Intel Corporation (NASDAQ:INTC)’s security software unit McAfee, Inc Monday said it has signed a definitive agreement to initiate a conditional tender offer to acquire Findland’s network firewall products provider Stonesoft Oyj (HEL:SFT1V).

In Helsinki, Stonesoft shares are up about 125 percent and trades at 4.44 euros.

Intel Corporation (NASDAQ:INTC) is currently trading at $24, up 0.15 percent on a volume of 6.9 million shares on the Nasdaq.

According to data compiled by Bloomberg, an average premium of 96 percent has been reported in 51 computer-security deals over the past 12 months. Intel’s deal with Stonesoft Oyj (HEL:SFT1V) has been done at a premium of 128 percent over the May 3 closing price.

Stonesoft investors will get €4.50 ($5.90) a share, more than double the 3 May closing price, the companies said on Monday in a statement, sending the stock soaring. Stonesoft chief executive officer and another board member who together hold 34.7 percent of shares accepted the offer.

This deal comes two months after McAfee announced it acquired ValidEdge from LynuxWorks, to beef up its malware detection services. Terms of that deal were not disclosed.

Stonesoft delivers software-based, dynamic, customer-driven, cyber security solutions to secure information flow and simplify security management. Its evasion prevention systems, and SSL VPN solutions addresses businesses of all sizes.

Network security is a vital component of a comprehensive security solution, where next-generation firewalls solve critical customer needs. The purchase would help McAfee leverage its cloud-based Global Threat Intelligent Service and expand its network-firewall and evasion-prevention offerings as it competes against rivals such as Symantec Corporation (NASDAQ:SYMC)

Analysts anticipate Stonesoft has the potential to see strong growth so this is a good deal for Intel Corporation (NASDAQ:INTC), while the offer price makes it a good deal for Stonesoft shareholders.

This deal acquires great significance with the recent security breaches reported at Twitter and Evernote. On the enterprise side, companies like Github, Dwolla and Zendisk have also been impacted by malicious hackers on the hunt for sensitive data.

Santa Clara, California-based Intel bought McAfee in 2011 for about $7.7 billion to add security software to its chip-making arsenal.

The bedrock of McAfee’s security portfolio is eroding away. According to figures from IDC released last month, PC devises saw their biggest single-quarter decline in Q1, with shipments down 14 percent to 76.3 million units. Consumers and businesses now increasingly opt for devices like tablets and smartphones, which rely extensively on cloud-based storage and computing.

With its traditional large PC segment getting eroded, McAfee’s deal with Stonesoft Oyj (HEL:SFT1V) would enhance its lead over its rivals in the burgeoning cloud-based networked security products.