UK-based cybersecurity solutions provider Sophos has agreed to acquire Secureworks from Dell Technologies in an all-cash transaction valued at around $859m. The deal is aimed at bolstering Thoma Bravo-backed Sophos’ cybersecurity offerings and expanding its reach across global markets.
According to the terms of the definitive agreement, Secureworks’ shareholders, including Dell, will receive $8.5 per share in cash. This represents a 28% premium over the unaffected 90-day volume-weighted average price.
Through the acquisition, Sophos aims to combine its expertise in managed security services and end-to-end security products with Secureworks’ security operational capabilities via the Taegis platform. Sophos claims that the integration will deliver advanced managed detection and response (MDR) and extended detection and response (XDR) solutions, thereby enhancing the security resilience of global organisations.
Secureworks 101
Established in 1998, Secureworks was acquired by Dell in 2011 before listing its shares through an initial public offering (IPO) in New York in 2016. Taegis, meanwhile, is a Software as a Service (SaaS)-based, open XDR platform. Secureworks claims that the platform was developed using over 20 years of real-world detection data, security operations expertise, and threat intelligence and research. Taegis is embedded in the security operations of thousands of organisations worldwide, utilising advanced artificial intelligence (AI)-driven capabilities to detect sophisticated threats, streamline investigations, enhance collaboration, and automate appropriate responses.
“Our mission at Secureworks has always been to secure human progress,” said said Secureworks’ CEO Wendy Thomas. “Sophos’ portfolio of leading endpoint, cloud, and network security solutions – in combination with our XDR-powered managed detection and response – is exactly what organisations are looking for to strengthen their security posture and collectively turn the tide against the adversary.”
By combining advanced security controls, AI-powered intelligence, and cybersecurity expertise, both firms claimed that the partnership would also provide robust protection and threat intelligence to businesses of all sizes. The Thoma Bravo-backed cybersecurity solutions provider added that it intends to unify solutions from both companies into a broader and stronger security portfolio to support small, mid- and enterprise customers.
Sophos also plans to expand its offerings to include identity detection and response (ITDR), next-generation security information and event management (SIEM) capabilities, operational technology (OT) security, and improved vulnerability risk prioritisation.
“Secureworks offers an innovative, market-leading solution with their Taegis XDR platform. Combined with our security solutions and industry leadership in MDR, we will strengthen our collective position in the market and provide better outcomes for organisations of all sizes globally”, said Sophos’ CEO Joe Levy.
“Secureworks’ renowned expertise in cybersecurity perfectly aligns with our mission to protect businesses from cybercrime by delivering powerful and intuitive products and services. This acquisition represents a significant step forward in our commitment to building a safer digital future for all.”
The transaction has received unanimous approval from the boards of both companies. Subject to customary conditions, the proposed deal is anticipated to be completed in early 2025.
This acquisition comes amid escalating global cyber risks driven by an increasingly sophisticated cybercriminal ecosystem and geopolitical tensions. Earlier this month, Thoma Bravo completed the all-cash acquisition of cybersecurity AI firm Darktrace in a deal that valued the latter at around $5.3bn.
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