“Dell is considering selling cybersecurity company SecureWorks

“Dell is considering selling cybersecurity company SecureWorks

Dell Technologies is considering selling SecureWorks. This is an American provider of cyber security services, with a market value of almost two billion dollars. Selling it would help Dell reduce its debt a little, which it has to do because the company is now back on the stock market.

That’s what news agency Reuters reports based on anonymous sources within Dell. The company has a debt of no less than 50 billion dollars. Since it went public again last year through a complex deal with its subsidiary VMware, it has been working on plans to reduce this debt burden. After all, this is important for the confidence of investors and shareholders.

Early stage

SecureWorks is currently working with investment bank Morgan Stanley on a sales process for the entire company. According to the anonymous sources of Reuters, this process is still at a very early stage. The sources wanted to remain anonymous because the process is still secret, so the question is how fast this will happen, if it actually happens. Dell and SecureWorks did not want to respond to questions from Reuters and Morgan Stanley did not respond to the request for comment.

Dell acquired SecureWorks in the course of 2011 for $612 million. The company went public in 2016 and has since risen considerably in value. Since it went public, the share price has increased by 64 percent. Among other things, it offers solutions aimed at the security of information and protects business networks against cyber-attacks by 4,300 customers in more than 50 countries.

Dell and the stock market

Last December, Dell became a listed company. Before that, it made a $23.9 billion deal to buy back shares associated with its interests in VMware. That’s what it took over when it bought EMC for 67 billion dollars in 2016, which in turn had a majority stake in VMware.

Last year, Dell decided to bypass the traditional IPO route. That out of fear of investor reaction to the $50 billion of debt it has.

This news article was automatically translated from Dutch to give Techzine.eu a head start. All news articles after September 1, 2019 are written in native English and NOT translated. All our background stories are written in native English as well. For more information read our launch article.