Working with investment banks, Dell Technologies is exploring whether it can find a buyer for the security company.
This is according to sources of Reuters. SecureWorks has a market value of $800 million, about €722 million. In 2019, Dell was already considering selling SecureWorks. At the time, the company saw this as an opportunity to reduce debts, which at the time amounted to about $50 billion. According to the latest known figures, the current debt is about $20 billion.
Why Dell would now want to sell SecureWorks is not exactly known. Reuters does note that SecureWorks shares, which are partially publicly traded, have fallen more than 66 percent in value since September 2021. The security company is struggling to differentiate itself from major players in the market. SecureWorks offers an XDR platform, which puts it in a highly competitive market.
However, Reuters’ sources indicate Dell may still keep SecureWorks. However, the involvement of investment banks such as Morgan Stanley and Piper Sandler shows that Dell is open to a sale to a private equity firm, for example, if the terms are favorable to the tech company.
Dell did not want to comment on Reuters’ reporting.
Dell’s future
Simultaneously with the news about the possible sale of SecureWorks, Dell released quarterly figures. These figures show that the company is experiencing strong growth. Total revenue increased 9 percent in the past three months to $25.03 billion. The Infrastructure Solutions Group achieved record revenue of $11.65 billion, partly due to 38 percent growth resulting from high demand for servers with Nvidia hardware to run AI workloads. Revenue by the Client Solutions Group, which includes PCs, fell 4 percent to $12.41 billion.
Tip: “Dell is considering selling cybersecurity company SecureWorks