Dell Technologies Looking To Sell Off SecureWorks: Report
Dell Technologies is reportedly exploring the sale of security subsidiary SecureWorks, according to a report by Reuters. The news comes just one day after SecureWorks stock reached an all-time high of $24.56 per share on Feb. 5.
The $91 billion infrastructure giant owns an 85 percent majority stake in the security vendor, which is part of the Dell Technologies family of businesses.
Reuters, citing people familiar with the matter, said SecureWorks is working with Morgan Stanley on a potential sale process which is in its early stages.
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Both SecureWorks and Dell declined to comment on the matter. Morgan Stanley did not immediately respond to CRN for comment.
SecureWorks stock was down 3 percent as of Thursday afternoon, trading at $23.02 per share. The company had was on the rise throughout the second half of January, hitting its all-time high of $24.56 per share on Feb.5. According to multiple estimates, SecureWorks has a market cap of between $1.5 billion to $2 billion.
The news comes just six weeks after Round Rock, Texas-based Dell Technologies became a public company through a VMware stock swap deal. Dell has approximately $50 billion in debt, stemming from its blockbuster $67 billion acquisition of EMC in 2016.
Dell Technologies stock was down 2 percent this afternoon, trading at $49.84 per share.