UPDATED 17:37 EDT / DECEMBER 23 2019

SECURITY

Dell considers buying up the rest of Secureworks

Dell Technologies Inc. is said to be considering buying up the remaining shares of the cybersecurity services company Secureworks Inc., according to a Bloomberg report today.

The report, which cites “people familiar with knowledge of the matter,” said Dell is interested in buying the 13.8% of Secureworks’ shares it doesn’t currently own in order to consolidate the business fully.

However, Bloomberg noted that no final decision has been made, and that Dell could still scrap the idea. Dell had previously considered selling its stake in the company, Bloomberg added.

Secureworks, which is based in Atlanta, manages and outsources security services for enterprise clients. It was bought by Dell in 2011, and later went public via an initial public offering in 2016. However, Dell still owns an 86.2% stake in the company, and also controls 98.4% of the company’s voting power, Bloomberg said.

In recent years Secureworks has been trying to expand its business by developing its own cybersecurity and analytics software products, the report added.

The move would just be the latest reorganization of Dell’s portfolio since the company relisted its shares on the stock market in 2018. Just last month, it was reported that Dell was exploring the sale of its RSA Security subsidiary in a deal that could net it more than $1 billion.

“Dell doesn’t come to rest and instead keeps investing and divesting in its portfolio companies,” said Holger Mueller of Constellation Research Inc. “But it’s really time to get out of this phase and offer investors, customers and prospects a clear portfolio of capabilities and the align and then execute on them for future success.”

Secureworks’ shares rose 11.8% today.

Photo: Wikipedia

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