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5 Things To Know About Dell’s $2.08 Billion Plan To Sell RSA Security

Michael Novinson

From Dell’s security-focused M&A to changes in RSA’s valuation to STG’s cybersecurity footprint, here are five of the most important things to know about RSA moving into the hands of private equity.

3. RSA’s Valuation Is Stagnant From 13.5 Years Ago

Cybersecurity has been one of the most explosive segments in all of technology, with Okta, CrowdStrike and Zscaler achieving market caps of $16.6 billion, $14 billion and $8.2 billion, respectively, less than a dozen years after they were founded.

But valuation growth has been much more fleeting for RSA, which was sold in September 2006 to Hopkinton, Mass.-based storage giant EMC for $2.1 billion. Thirteen-and-a-half years later, RSA is being spun out from Dell Technologies for $250 million less than EMC initially paid to purchase the company.

RSA is probably best known for its SecurID authentication tokens, but that space has become highly commoditized in recent years. Dell Technologies assumed control over RSA as part of its $60 billion purchase of EMC in September 2016.

 
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