Dell Considers Buying Remaining Shares Of Secureworks: Report

Dell Technologies has held a controlling stake in Secureworks since 2011, and reportedly is now looking to buy out minority stakeholders that hold a combined 13.8 percent interest in the cybersecurity services firm.

Controlling owner Dell Technologies is looking to buy out the minority stakeholders in cybersecurity services firm Secureworks, according to a Bloomberg report.

The Round Rock, Texas-based technology giant has held a majority interest in Atlanta-based Secureworks since 2011, and is now interested in fully consolidating the business under the Dell Technologies umbrella, people with knowledge of the matter told Bloomberg. No final decision has been made and Dell could elect not to proceed, sources told Bloomberg.

Dell’s stock inched ahead $0.84 (1.69 percent) to $50.46 Monday, while Secureworks’ stock skyrocketed $2.54 (16.77 percent) Monday to $17.72 per share, which is the highest the company’s stock has traded since May 17. Secureworks declined to comment, while Dell didn’t immediately respond to a CRN request for comment.

[Related: Dell Technologies Looking To Sell Off SecureWorks: Report]

The potential buyout of other Secureworks shareholders represents an about-face for Dell, which in February was looking at divesting its 86.2 percent stake in Secureworks altogether, Bloomberg reported at the time. More recently, Dell has looked at moving its other cybersecurity asset —RSA—holding early stage talks about a sale and hoping to get at least $1 billion in proceeds, including debt, Bloomberg said.

Significant stockholders holding the remaining 13.8 percent of Secureworks shares include (from largest to smallest): Centerview Capital; Secureworks President, CEO and Director Michael Cote; Neil Gagnon, managing partner at investment firm Gagnon Securities; Legal & General Investment Management; Masters Capital Management; The Vanguard Group; Royce & Associates; and ETF Managers Group.

Dell took Secureworks public on the Nasdaq stock exchange in April 2016 at $14.00 per share, and the company’s stock climbed as high as $23.11 in February of this year before tumbling for most of the rest of 2019. Secureworks currently has a market cap of $1.4 billion, according to Bloomberg.

Secureworks in April unveiled its new Red Cloak Threat Detection and Response tool, which is the company’s first-ever offering that can be procured outside a managed services bundle, Senior Director of Product Management Kyle Falkenhagen told CRN at the time. It’s intended for more advanced clients that already have an internal security practice, according to Falkenhagen.

More recently, Secureworks snagged NCR Corp. global channel chief Maureen Perrelli to spearhead the company’s global channel engagement strategy. As Secureworks’ new chief channel officer, Perrelli will be focused on closely aligning the company’s product, sales and marketing efforts with the right partners.