In a surprise move Intel said that it will acquire security vendor McAfee for about $7.68 billion in a cash. The deal is poised to enhance Intel’s mobile strategy.

According to McAfee’s CEO Dave DeWalt, the number of connected devices is expected to grow from 1 billion to 50 billion by 2020 and it will reshape communication, collaboration and commerce for individuals and organizations around the world.

Intel said that current security practices don’t address the full range of Internet-connected devices, including TVs, cars, medical devices and ATM machines. “Hardware-enhanced security” will be needed to counter increasingly sophisticated threats, said Renée James, Intel senior vice president, and general manager of the group.

McAfee develops a variety of security software for end-users and enterprises, including antivirus applications, firewalls and intrusion protection systems.

McAfee’s biggest competitor is Symantec (SYMC) followed by Trend Micro of Japan and EMC on the enterprise security side. Just this week, Hewlett-Packard said it had purchased Fortify, an application security vendor, for an undisclosed amount.