Shares in Absolute Software Corp. (ABT/TSX) gained more than 5% yesterday, as investors in the Canadian laptop security firm react positively to Intel Corp.' s (INTC/NASDAQ) US$7.7-billion acquisition of McAfee Inc., the world's largest security software firm.

"We believe that this transaction increases the strategic value of Absolute," Tom Liston, an analyst at Versant Partners, says in a note to clients, echoing the market's enthusiasm for the deal.

Mr. Liston said Absolute is a key partner with Intel on its anti-theft initiative, as well as a partner with McAfee. He said Intel is entering the security software space as part of a trend to place more security on the chip/firmware where it is persistent.

"The trend bodes well for Absolute as its focus is securing laptops with embedded security software in the firmware," he wrote.

Mr. Liston reiterated his "buy" rating and $6 price target on Absolute stock, adding the macro environment also continues to be positive for the company.