Sophos to Enhance Cybersecurity Offerings
Thoma Bravo-backed cybersecurity firm Sophos announced its acquisition of Secureworks, a subsidiary of Dell Technologies, for $859 million in cash.
The acquisition is aimed at strengthening Sophos' product lineup for enterprise customers, adding more advanced capabilities to its cybersecurity portfolio. Sophos is keen to enhance its presence in the cybersecurity market by offering more comprehensive protection and services to its clients.
Thoma Bravo-backed Sophos will acquire Secureworks, a Dell Technologies subsidiary, for $859 million in cash.
- The acquisition strengthens Sophos' enterprise cybersecurity product lineup, enhancing its market presence.
- Sophos aims to offer more advanced protection and services to its clients through this deal.
- Secureworks' shareholders, including Dell, will receive $8.50 per share.
- Following the news, Secureworks' stock dipped 1.5% to $8.35 in early trading.
Despite the acquisition, Secureworks has struggled against larger competitors in the cybersecurity sector.
Expanding Cybersecurity Portfolio
Founded in 1998, Secureworks became known for its Taegis platform, a cloud-based solution designed to detect and combat advanced threats.
However, despite its innovative approach, Secureworks struggled to differentiate itself from larger competitors in the cybersecurity industry.
The company reported a quarterly loss of 17 cents per share for the period ending July 31, which highlighted the difficulties it faced in keeping pace with other providers.
Dell acquired Secureworks in 2011 for $612 million and later took the company public in 2016.
Despite previous attempts to sell Secureworks, including a reported effort in 2019, Dell finally turned to investment bankers from Morgan Stanley and Piper Sandler to assess takeover interest.
Thoma Bravo, which has been actively building a portfolio of cybersecurity assets, is expected to finalize the deal by early 2025, further solidifying its presence in the market after its earlier acquisition of UK-based Darktrace for $5.3 billion.
