Move would reverse previous plan to sell stake in the company, comes after reports of possibly selling RSA
Dell Technologies is continuing to sort out its security product strategy, most recently considering the purchase of the remaining 13.8% of shares of Secureworks that it doesn’t currently own and then consolidating the business.
The Lowdown: The idea of buying the shares, reported this week by Bloomberg, would be a reversal of Dell officials’ previous plans for Secureworks and comes on the heels of reports that the tech giant is considering selling its RSA Security unit for as much as $1 billion. It also would reverse Dell’s earlier plan to sell its stake in Secureworks.
The Details: According to the Bloomberg report, unnamed sources familiar with the discussions said that no final decision has been made and that Dell may not go ahead with the plan. Dell owns 86.2% of Secureworks and controls 98.4% of its voting power. Dell bought the 20-year-old cybersecurity service company in 2011 and took it public five years later.
Secureworks offers managed security services and outsources services to organizations. It runs six security operations centers (SOCs) around the world, processing more than 300 billion cyberevents a day, and also has its Secureworks Counter Threat Unit research group that collects threat data. It has more than 4,100 customers in more than 50 countries.
Dell, which went private in a high-profile move in 2013 that was challenged by some investors, returned to being a publicly traded company in 2018 and has worked to sort out its product portfolio and executive lineup.
Background: Secureworks in recent months also had added to its executive tier and product lineup. Earlier this month, the company appointed Paul Parrish as its CFO and in late November named former NCR official Maureen Perrelli as its chief channel officer. Also in November the company announced a partnership with Microsoft to help enterprises more quickly detect cyberthreats and in August said it was adding managed service options to its Red Cloak threat detection and response offering.