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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.

1. The Deal Continues Dell Trend Of Selling Off Security Assets

Dell moved aggressively into the cybersecurity space in the early 2010s, taking a majority stake in cybersecurity services firm Secureworks in 2011 and purchasing database management provider Quest Software and SMB-friendly network security company SonicWall for $2.36 billion and $1.2 billion, respectively, in 2012.

Dell then inherited RSA as part of its $60 billion buy of EMC in September 2016. But Dell changed course of two of its earlier security acquisitions, selling both Quest and SonicWall to private equity firm Francisco Partners in November 2016 for an undisclosed amount.

After the RSA sale closes, Dell’s security portfolio will be limited to Secureworks, with Bloomberg reporting in December that Dell was looking to buy out the company’s minority stakeholders that hold a combined 13.6 percent interest. Dell Technologies is also the majority stakeholder in VMware, which in October 2019 bought endpoint detection and response (EDR) firm Carbon Black for $2.1 billion.

 
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