Thought Leadership
PC manufacturer Dell Technologies is making another attempt to sell its cyber security subsidiary SecureWorks, Reuters reports. Dell has commissioned the renowned investment banks Morgan Stanley and Piper Sandler to sound out potential buyers for the company.
Previous attempts to find a buyer for the US cyber security company had failed.
Dell currently holds 79.2% of the shares in SecureWorks, whose market value is estimated at around 800 million dollars.
Private equity firms looking for lucrative investment opportunities in the technology sector are the main potential buyers.
SecureWorks, founded in 1998, specializes in security services to protect against cyber attacks. Despite its established position, the company faces strong competition in the highly competitive cybersecurity market. Dell acquired SecureWorks in 2011 to expand its cybersecurity offering. The acquisition was aimed at offering security services ranging from managed security to risk consulting. With the purchase, Dell wanted to strengthen its position in the IT-as-a-Service market and integrate new Security-as-a-Service solutions
The news of the possible sale plans caused a stir on the stock market. SecureWorks shares rose by 34% at times, but gave up some of these gains over the course of the trading day.
Market observers see the potential sale as part of a larger strategy by Dell to focus on its core businesses. Recently, the growing demand for AI servers in particular has significantly improved the company’s profit prospects.
