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Dell Inks Deal For SonicWall

By Scott Campbell
March 13, 2012    9:28 AM ET

Dell signed an agreement to acquire network security and data protection specialist SonicWall for an undisclosed amount.

The purchase will complement Dell's security solutions portfolio, according to John Swainson, president of Dell Software Group.

"We are building a strategic software portfolio to address the needs of our customers with key assets in the fast-growing and highly profitable IT security solutions business. Our customers see security as a key IT concern for the foreseeable future," said Swainson in a statement. "SonicWall gives Dell access to unique intellectual property resources and technology that position us well in fast-growing parts of the software security business."

[Related: Dell's Greg Davis: Training Is Key To SonicWall Integration]

Swainson joined Dell on March 5 . The former CEO of CA Technologies wasted no time completing the first major acquisition under his direction.

SonicWall's next-generation and unified threat management firewalls will fit into Dell's security portfolio, which also includes Dell SecureWorks security services, cloud security and data encryption solutions, and Dell Kace vulnerability and patch management, according to Dell.

Dell plans to incorporate key aspects of SonicWall's channel programs -- and the company's 15,000 solution providers -- into its PartnerDirect program, according to both companies.

Dell's breadth and reach into small and midsize companies will provide a significant opportunity to expand SonicWall's customer base, said Matt Medeiros, president and CEO of SonicWall.

"Dell's distribution, reach and brand are well-recognized across the industry. This transaction aligns well with Dell's midmarket design focus and allows us to accelerate growth of our flagship SuperMassive Next-Generation Firewall solutions with large enterprise customers," Medeiros said in a statement.

The deal is expected to close in the second quarter and has been approved by the boards of both companies.

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