UK-headquartered Sophos is acquiring Nasdaq-listed Secureworks for $859m in cash, from Dell Technologies. The deal brings together two big channel-first cyber security services companies.
Sophos, backed by investment firm Thoma Bravo, says it will integrate solutions from both companies into a “broader and stronger” security portfolio, benefiting small, mid-sized and enterprise customers.
Dell owns around 83% of Secureworks' stock. Thoma Bravo acquired Sophos for nearly $4 billion in early 2020. Dell has been trying to sell Secureworks for some time, to focus on its core markets.
The deal will see Sophos expanding its current portfolio with other new offerings from Secureworks, like identity detection and response (ITDR), next-gen SIEM capabilities, operational technology (OT) security, and enhanced vulnerability risk prioritisation.
“As two partner-centric organisations, the combination of Sophos and Secureworks will enable the company to expand its market presence to create greater value within the channel and strengthen the overall security community,” said Sophos.
“Secureworks offers an innovative, market-leading solution with their Taegis XDR platform. Combined with our security solutions and industry leadership in MDR, we will strengthen our collective position in the market and provide better outcomes for organisations of all sizes globally, said Joe Levy, CEO of Sophos.
Wendy Thomas, CEO of Secureworks, added: “As Joe and I both believe, this transaction will strengthen our go-to-market offering with Sophos’ global scale, expertise and reputation.”
Secureworks shareholders, including Dell Technologies, will receive $8.50 per share in cash. This represents a 28% premium to the unaffected 90-day volume-weighted average price (VWAP). The transaction is expected to close in “early 2025”, subject to customary closing conditions.
