Dell Sells Cybersecurity Unit for $2.08 Billion TO Symphony Technology Group Consortium

Dell Sells Cybersecurity Unit for $2.08 Billion TO Symphony Technology Group Consortium

Dell Technologies Inc. is near to a deal for selling its RSA cybersecurity business for more than $2 billion. Reportedly, the buyer is a syndicate headed by Symphony Technology Group. According to the sources familiar with the matter, the deal could take place as early as Tuesday. Dell had purchased RSA for $60 billion while buying EMC Corp. in 2016. Now, it is selling the unit to private equity business STG Partners LLC. It seems like Dell’s latest effort is to make things easier for its businesses’ portfolio. RSA offers security technologies for access management, threat detection, fraud prevention, and response identity. The security firm has over 12,500 customers.

The deal comprises several pieces, like the RSA security conference, which took place in San Francisco in the previous year. As per Dell, the cash-settled deal also includes RSA NetWitness Platform, RSA Archer, RSA SecureID, Risk Intelligence, and RSA Fraud. Meanwhile, the Symphony Technology Group association comprises of Ontario Teachers’ (the Ontario Teachers’ Pension Plan Board) and AlpInvest (AlpInvest Partners). Dell’s agreement to sell RSA arrives as Broadcom purchased the Symantec Enterprise Security business, and Symantec’s consumer entity turns into NortonLifelock. Both Dell and RSA said the effort would assist their customers and companies. Jeff Clarke, Dell’s COO, said the deal would further facilitate their business as well as a line of products. Well, RSA can utilize private investment banking to develop its business.

Jeff also noted that the approaches of Dell Technologies and RSA have developed to tackle different business requirements with various marketing prototypes. The executive said the procurement of RSA had offered them greater adaptability to concentrate on integrated invention across Dell. Jeff noted Dell has sought a buyer having enthusiasm regarding the mission of RSA. The company has also considered other aspects like interest in optimizing RSA’s talent, growth perspective, a stronger commitment to user and partner base, and experience. Dell, eventually, decided that Palo Alto is the right candidate to achieve the aims. For now, the procurement contract is subject to regular types of federal approval before finalization.

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