Dell Technologies logo displayed at Milipol Paris, Villepinte, near Paris, France, on November 15, 2023. File image
In Summary:
- Dell Technologies is exploring the sale of SecureWorks once more after previous attempts failed.
- SecureWorks, valued around $800 million, could still remain with Dell depending on the outcome.
- The cybersecurity firm, which has faced challenges in competing with larger players, will report its Q2 results on Sept. 5.
Dell Technologies is again exploring the sale of SecureWorks, following unsuccessful earlier attempts to find a buyer for the U.S.-based cybersecurity firm.
Sources familiar with the matter disclosed that Dell has enlisted investment bankers from Morgan Stanley and Piper Sandler to gauge interest from potential acquirers, including private equity firms.
“A deal for SecureWorks… is not guaranteed and Dell could choose to maintain ownership of the company,” the sources added.
SecureWorks, with a market value of about $800 million, saw its shares jump as much as 34% after the Reuters report, though the gains were later pared.
Dell owns 79.2% of SecureWorks through class B shares and controls 97.4% of the company’s voting stock.
Dell had previously explored a sale of SecureWorks in 2019, “part of an effort to trim the computer maker’s debt pile.”
Founded in 1998 and based in Atlanta, SecureWorks provides security services designed to protect corporations from cyberattacks.
The company’s Taegis platform “helps detect advanced threats,” according to its website.
A SecureWorks spokesperson declined to comment on the sale process, stating that the company is “focused on serving our stakeholders and advancing our mission to secure human progress with Taegis.”
Dell acquired SecureWorks for $612 million in 2011 before it was listed publicly in New York in 2016.
Despite efforts, SecureWorks’ shares have lost more than two-thirds of their value from their September 2021 peak as it has struggled to compete against larger cybersecurity providers.
Dell has benefitted from increased investor enthusiasm for artificial intelligence, with its profits boosted by strong demand for AI-focused servers.
The company’s shares have risen about 46% so far this year, outperforming the S&P 500 index, which has increased by 18%. SecureWorks is scheduled to report its second-quarter results on September 5.