Company could ask for $1 billion for the cybersecurity business
Dell Technologies may be looking to sell its RSA Security unit for as much as $1 billion, according to Bloomberg News.
The Lowdown: Citing unnamed people familiar with the situation, Bloomberg reported this week that discussions are in the early stages and there’s no guarantee that Dell will sell the business unit. A Dell representative would not comment about the matter.
The Details: Dell inherited RSA when it bought storage giant EMC for more than $60 billion in 2016. EMC had bought RSA in 2006 for about $2.1 billion. RSA was one of a number of businesses that Dell acquired via the EMC deal, including VMware, Pivotal, and Virtustream. At various points since the EMC takeover, there have been rumors of Dell looking to sell off various businesses, including RSA.
RSA offers a broad range of cybersecurity products designed to help enterprises detect and respond to advanced cyberattacks. Also in the portfolio are tools for managing identities and reducing threats like IP theft and fraud.
Bloomberg noted that RSA, which also conducts a large annual security conference, is seeing strong competition from the likes of Okta and Ping Identity. At the same time, Dell and its companies continue to grow their own security capabilities, such as VMware’s acquisition of Carbon Black this year for $2.1 billion. Dell also owns security firm SecureWorks.
On its website, RSA notes that it protects about 30,000 businesses and about 2 billion customers. It also manages more than 50 million identities.
The Buzz: “Carbon Black’s focus on hybrid cloud security is well-aligned with both VMware’s and Dell’s broader end-to-end enterprise solution strategies,” Charles King, principal analyst with Pund-IT, told Information Security Media Group’s BankInfoSecurity site. “Though public key encryption and management is still a significant factor in enterprise computing, its position is likely to diminish over time. In other words, putting RSA on the market would make sense both practically and strategically for Dell. The value that $1 billion in cash could provide for funding other acquisitions or paying down debt is also a nice sweetener.”