You are here
Dell to explore buying the rest of Secureworks: sources
DELL Technologies Inc, the computer company founded by Michael Dell, is considering buying the remaining outstanding shares in cybersecurity services operator Secureworks Corp, according to people with knowledge of the matter.
The Round Rock, Texas-based company is exploring making an offer for the remaining 13.8 per cent of shares it doesn't own of Secureworks and fully consolidating the business, said the people, who asked not to be identified because the matter is private.
A Secureworks takeover would be a departure from Dell's earlier plan to sell its stake in the company, the people added. Representatives for Dell and Secureworks declined to comment.
Atlanta, Georgia-based Secureworks, which was founded in 1998, manages and outsources security services for corporate clients, according to its website. The company has been trying to develop its own cybersecurity and analytics software.
Dell owns 86.2 per cent of Secureworks by holding the entirety of the company's Class B shares as of Nov 1, according to a filing. It also controls 98.4 per cent of the company's voting power.
Secureworks shares jumped 11.8 per cent to US$16.97 on Monday, giving the company a market capitalisation of US$1.4 billion. Dell shares were up 1.2 per cent at US$50.83.
Dell originally bought Secureworks in 2011, before taking the business public through an initial public offering in 2016. Secureworks shares are up slightly since its IPO and are down about 13 per cent this year.
Since Dell listed its shares again on the public market in 2018, it has looked to reorganise its portfolio. Last month, it began exploring a sale of RSA Security, in a deal it hopes could fetch more than US$1 billion. BLOOMBERG