Dell to sell its cybersecurity RSA unit to STG Partners for $2.08 billion

In its announcement on Tuesday, Dell Technologies declared that it has decided in favor of selling its cybersecurity unit RSA. The American multinational computer technology company struck a deal with STG Partners LLC for $2.08 billion.

The transaction is not yet completed but Dell expressed confidence that it will be finalized in the upcoming weeks. Bloomberg had first reported back in November that Dell was planning on selling its RSA unit that failed to be profitable for the technology company.

RSA’s Annual Conference In San Francisco Is Scheduled In June 2020

If the deal is finalized before summers, it will only be weeks before the annual conference of the cybersecurity business in San Francisco and may stir uncertainty regarding its future. Owing to the recent outbreak of Coronavirus in China and rising cases of the health catastrophe across the globe, IBM Corp recently announced that it will no longer be participating in the conference this year. IBM has the reputation of a major sponsor for the annual conference.

Dell had acquired RSA when it made a sizeable investment to purchase EMC Corp back in 2016. The cybersecurity unit offers a wide set of security suits, encryption technology, and digital risk management software to as many as 30,000 of its customers.

Dell Inc. made its return to the stock market in 2018 after the founder and CEO Michael Dell’s strategic move to take it private some five years ago. The CEO has offered a $25 billion buyout to the company’s shareholders in order to keep it away from the public limelight. In 2018 when Dell’s prospects were significantly better and its net worth was reported at $75 billion, three times the buyout deal offered previously to the shareholders, Michael decided to take it public again.

Dell To Buy The Remaining Shares Of Secureworks Inc

Dell has been focusing on divesting assets in order to cope with the debt that fell on its shoulders following its purchase of EMC Corp. Last December, however, the company accentuated that it plans on purchasing the rest of the shares of Secureworks Inc (cybersecurity services company).

At the time of writing, Dell is trading at $52.77 per share in the stock market that marks an almost same level at which it opened in January 2020. In 2019, however, Dell was reported to have ended the year with an almost 15% annual gain. Its share prices were seen as high as around $70 in May 2019.