Sophos said on Monday that it would buy SecureWorks (SCWX, Financials) in an all-cash deal for over $859 million. Under the terms of the agreement, SecureWorks shareholders—including majority owner Dell Technologies (DELL, Financials)—will get $8.50 per share in cash, a 28% premium over the 90-day volume-weighted average price previous to the deal's announcement.
With dual-class shares controlling 97.4% of SecureWorks's voting stock and 79.2% owned by Dell, which owns, the deal—which is anticipated to finalize in early 2025—will help Dell.
"Combined with our security solutions and industry leadership in Managed Detection and Response (MDR), we will strengthen our collective position in the market and provide better outcomes for organizations of all sizes globally," said Joe Levy, CEO of Sophos on the transaction. Thoma Bravo is an investment company supporting Sophos.
SecureWorks has revealed mixed performance in its second-quarter fiscal 2025 results. The TaegisTM platform revenue of the firm increased by 7% year over year to $71.2 million, therefore contributing to a total annual recurring income of $290 million, a 5% rise from the year before. Notwithstanding this, SecureWorks's overall income dropped from $93 million in Q2 2024 to $82.2 million mostly from the strategic wind-down of its old services. But from $32.4 million in the year before, the company's GAAP net loss dropped greatly to $14.7 million.
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