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Sophos to Acquire Secureworks from Dell Technologies for $859 Million

Sophos, a cybersecurity company backed by Thoma Bravo, has announced its acquisition of Secureworks from Dell Technologies in an all-cash deal valued at $859 million.

The merger aims to enhance managed detection and response (MDR) and extended detection and response (XDR) solutions for their global clientele. The combined entity is set to offer an array of security controls, artificial intelligence capabilities, threat intelligence, and leverage the extensive cybersecurity expertise of both teams.

The acquisition is expected to be finalized in early 2025, pending customary closing conditions.

“Secureworks offers an innovative, market-leading solution with their Taegis XDR platform,” stated Joe Levy, CEO of Sophos. “By integrating our security solutions with Secureworks’ industry-leading expertise in MDR, we will enhance our position in the market and deliver improved outcomes for organizations of all sizes globally. This acquisition aligns perfectly with our mission to protect businesses from cybercrime by providing powerful and intuitive products and services. It marks a significant advancement in our commitment to building a safer digital future for all.”

Dell Technologies’ Long-Awaited Sale of Secureworks

The sale of Secureworks has been in the works for some time, with reports in August indicating that Dell Technologies was actively seeking a buyer after previous attempts to divest the company had not succeeded. The last effort to sell Secureworks, which was estimated to have a market value of around $800 million, took place in early 2019. Dell Technologies currently holds approximately 83% of Secureworks’ total outstanding shares.

In early 2020, private equity firm Thoma Bravo acquired Sophos for nearly $4 billion.

Sophos has indicated plans to integrate offerings from both companies to create a more robust security portfolio that will cater to small, mid-sized, and enterprise customers. This will include the introduction of new solutions such as identity detection and response (ITDR), next-generation security information and event management (SIEM), operational technology (OT) security, and enhanced vulnerability risk prioritization.

As both companies prioritize partnerships, the merger is expected to expand market presence and generate greater value within the channel, thereby strengthening the overall security community.

“Our mission at Secureworks has always been to secure human progress,” commented Wendy Thomas, CEO of Secureworks. “Combining Sophos’ leading endpoint, cloud, and network security solutions with our XDR-powered MDR provides organizations with the tools they need to bolster their security posture. As Joe and I agree, this transaction will enhance our go-to-market strategy, leveraging Sophos’ global scale, expertise, and reputation.”

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