Secureworks: Dell Acquiring Entire MSSP?

Dell Technologies already owns a big piece of Secureworks, a Top 200 MSSP for 2019. Next up, the PC giant may acquire all remaining shares of of the MSSP, Bloomberg reports.

MSSP Alert has not confirmed the report, but Secureworks stock (SCWX) jumped roughly 16 percent on December 23 amid the M&A speculation.

Dell already owns about 86 percent of the MSSP.  Ironically, the PC giant in February 2019 was seeking to sell Secureworks, according to reports at that time. Fast forward to present day and the PC giant has a growing interest in various cybersecurity services. For instance:

  • Dell’s VMware arm recently acquired Carbon Black for endpoint protection software.
  • Dell has been promoting integrated VMware Carbon Black-Secureworks services to enterprise and midmarket customers.
  • Plus, Secureworks MDR (managed detection and response) is also now available to Dell customers through the Dell Safeguard and Response portfolio of offerings.

Still, Dell’s overall security product mix could be set to evolve. For instance, the company has been mulling the potential sale of its RSA security unit.

Secureworks: Recent Financial Performance

LinkedIn: Maureen Perrelli, Secureworks

Secureworks has been evolving beyond traditional MSSP monitoring services to develop and offer various SaaS services. Also, Secureworks in November 2019 hired NCR veteran Maureen Perrelli as chief channel officer.

For its third quarter of fiscal 2020, the company on December 5 disclosed:

  • Revenue of $141.3 million, up 6.2 percent from the corresponding quarter last year.
  • GAP net los of $7.9 million, larger than the $3.7 GAP net loss from the corresponding quarter last year.

Secureworks’ market capitalization is roughly $1.4 billion as of midday December 23. The company went public in April 2016.


Return Home

No Comments

Leave a Reply

Your email address will not be published.