financetom
Technology
financetom
/
Technology
/
Exclusive-Dell attempts to sell cybersecurity firm SecureWorks again, sources say
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
Exclusive-Dell attempts to sell cybersecurity firm SecureWorks again, sources say
Sep 1, 2024 8:26 PM

NEW YORK (Reuters) -Personal computer maker Dell Technologies ( DELL ) is again exploring a possible sale of SecureWorks ( SCWX ), after unsuccessful earlier attempts to find a buyer for the U.S. cybersecurity firm, according to people familiar with the matter.

Round Rock, Texas-based Dell, founded by CEO Michael Dell, has tapped investment bankers at Morgan Stanley ( MS ) and Piper Sandler ( PIPR ) to gauge takeover interest from potential acquirers, which include private equity firms, the sources said, requesting anonymity as the discussions are confidential.

A deal for SecureWorks ( SCWX ), which has a market value of about $800 million, is not guaranteed and Dell could choose to maintain ownership of the company, the sources added. SecureWorks ( SCWX ) shares jumped as much as 34% following the exclusive Reuters report, then pared gains.

Dell, which has shed many non-core assets in recent years, owns 79.2% of SecureWorks ( SCWX ) by holding all of the company's class B shares, according to recent filings. It also controls 97.4% of the company's voting stock through the dual class shares.

Dell explored a sale of SecureWorks ( SCWX ) in 2019, part of an effort to trim the computer maker's debt pile, Reuters reported at the time.

Atlanta, Georgia-based SecureWorks ( SCWX ), which was founded in 1998, offers security services that aim to protect corporations from cyberattacks. The company's flagship cloud-based platform Taegis helps detect advanced threats, according to its website.

A SecureWorks ( SCWX ) spokesperson declined to comment on the sale process, adding that the company was "focused on serving our stakeholders and advancing our mission to secure human progress with Taegis."

Dell and Piper Sandler declined to comment, while Morgan Stanley ( MS ) did not respond to requests for comment.

Dell acquired SecureWorks ( SCWX ) for $612 million in 2011, before listing its shares through an initial public offering in New York in 2016.

Shares of SecureWorks ( SCWX ) have lost more than two-thirds of their value from their September 2021 peak, as the company has struggled to compete and differentiate its offerings against larger cybersecurity providers.

Dell has been riding the recent wave of investor enthusiasm for artificial intelligence, its profits boosted by robust demand for its AI-focused servers. The company's shares have risen by about 46% so far this year, outperforming an 18% rise in the S&P 500 index.

SecureWorks ( SCWX ) is scheduled to report its second-quarter results on Sept. 5.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Demystifying Zoom Communications: Insights From 21 Analyst Reviews
Demystifying Zoom Communications: Insights From 21 Analyst Reviews
Jun 6, 2025
Providing a diverse range of perspectives from bullish to bearish, 21 analysts have published ratings on Zoom Communications ( ZM ) in the last three months. The table below offers a condensed view of their recent ratings, showcasing the changing sentiments over the past 30 days and comparing them to the preceding months. Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish...
This Firm Targets Expansion Into US Payments Market
This Firm Targets Expansion Into US Payments Market
Jun 6, 2025
The Chinese fintech has cleared one of many regulatory hurdles to enter the U.S. digital payments business after gaining a state-level operating license Key Takeaways: After getting U.S. federal clearance, the firm is now adding the required permits from individual states, starting with Arizona The company's overseas revenue is rising fast, helping to offset a saturated Chinese market Payment services...
Amazon Bets Big On Taiwan With $5 Billion Cloud Push, Launches New AWS Region To Power AI And Data Growth
Amazon Bets Big On Taiwan With $5 Billion Cloud Push, Launches New AWS Region To Power AI And Data Growth
Jun 6, 2025
Amazon.com Inc. ( AMZN ) has announced plans to invest more than $5 billion in Taiwan’s cloud infrastructure as it launches a new Amazon Web Services Asia Pacific Region. The investment will support the construction, connection, operation, and maintenance of data centers across the island nation. What Happened: The new regional deployment enables organizations to build and scale using AWS’s...
Five9 Stock: A Deep Dive Into Analyst Perspectives (18 Ratings)
Five9 Stock: A Deep Dive Into Analyst Perspectives (18 Ratings)
Jun 6, 2025
Five9 ( FIVN ) underwent analysis by 18 analysts in the last quarter, revealing a spectrum of viewpoints from bullish to bearish. The table below provides a snapshot of their recent ratings, showcasing how sentiments have evolved over the past 30 days and comparing them to the preceding months. Bullish Somewhat Bullish Indifferent Somewhat Bearish Bearish Total Ratings 9 6...
Copyright 2023-2026 - www.financetom.com All Rights Reserved