Dell is considering buying the rest of Secureworks’ outstanding shares

Dell Technologies is considering buying the remaining outstanding shares in cybersecurity services operator Secureworks Corp, according to people with knowledge of the matter.

By: BLOOMBERG
| Updated on: Dec 26 2019, 13:11 IST
Dell Technologies is considering buying the remaining outstanding shares in cybersecurity services operator Secureworks Corp, according to people with knowledge of the matter.
Dell Technologies is considering buying the remaining outstanding shares in cybersecurity services operator Secureworks Corp, according to people with knowledge of the matter. (REUTERS)

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% 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.

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No final decision has been made and Dell could elect not to proceed, the people said.

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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 also develops its own software to detect and respond to cybersecurity threats.

Dell owns 86.2% 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% of the company's voting power.

Secureworks shares closed up 16.8% at $17.72, the highest price since May, giving the company a market capitalization of $1.4 billion. Dell shares closed up 1.7% at $50.46.

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% this year.

Since Dell listed its shares again on the public market in 2018, it has looked to reorganize its portfolio. Last month, it began exploring a sale of RSA Security, in deal it hopes could fetch more than $1 billion, according to people with knowledge of the matter.

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First Published Date: 26 Dec, 13:11 IST
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