Dell Technologies is once again considering the sale of SecureWorks. The U.S. cybersecurity firm, after previous attempts to find a buyer were unsuccessful, according to sources familiar with the situation.
The tech giant has enlisted investment bankers from Morgan Stanley and Piper Sandler to gauge interest from potential buyers. The list also includes private equity firms, the sources said, requesting anonymity due to the confidentiality of the discussions.
While SecureWorks, valued at approximately $800 million, is being considered for sale, there is no certainty a deal will be reached. Dell may ultimately decide to retain the company, the sources added.
Following the exclusive Reuters report, SecureWorks’ shares surged by up to 34 percent before trimming some of those gains.
Dell, which has been divesting non-core assets in recent years, currently owns 79.2 percent of SecureWorks through its holdings of the company’s class B shares, as per recent filings. The company also controls 97.4 percent of SecureWorks’ voting stock via dual-class shares.
This is not Dell’s first attempt to offload SecureWorks; in 2019, the company explored a sale as part of efforts to reduce its debt, according to a Reuters report.
Founded in 1998, SecureWorks provides security services designed to protect corporations from cyber threats. Its flagship cloud-based platform, Taegis, helps detect advanced threats, according to the company’s website.
A SecureWorks spokesperson declined to comment on the potential sale, stating that the company remains focused on serving its stakeholders and advancing its mission to secure human progress with Taegis.
Dell and Piper Sandler also declined to comment, while Morgan Stanley did not respond to requests for comment.
Dell acquired SecureWorks for $612 million in 2011 and later took the company public through an initial public offering in New York in 2016. Since their peak in September 2021, SecureWorks’ shares have lost more than two-thirds of their value, as the company has struggled to compete with larger cybersecurity providers.
Meanwhile, Dell has been benefiting from growing investor interest in artificial intelligence, with its profits bolstered by strong demand for AI-focused servers. Dell’s shares have risen about 46 percent this year, outpacing the S&P 500 index’s 18 percent increase.
SecureWorks is scheduled to report its second-quarter results on September 5.
