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Dell Is Expected To Announce RSA Security Business Sale On Tuesday

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Dell Is Expected To Announce RSA Security Business Sale On Tuesday

Dell Technologies Inc.’s (NYSE: DELL) deal with a private equity firm to sell its cybersecurity subsidiary is almost final and could be announced as soon as Tuesday, the Wall Street Journal learned.

What Happened

The Texas-based technology company has been looking to sell RSA, which provides services aimed at mitigating digital risks for corporations, for a while.

In November last year, Bloomberg reported that Dell was in talks with an unidentified company for a sale that could fetch more than $1 billion.

According to the Journal, the company’s talks with STG Partners LLC could result in a deal of above $2 billion.

Earlier last month, PE Hub reported that Dell has hired Morgan Stanley(NYSE: MS) to make the sale, and valued a deal at $3 billion.

According to the RSA website, it serves more than 30,000 customers across the world, including Japan’s Toshiba Corporation (OTC: TOSBF), India’s Infosys Ltd. (NYSE: INFY), and Dell itself.

Dell got hold of the cybersecurity firm when it acquired its parent company EMC for $67 billion in 2016. EMC had purchased RSA in 2006 for about $2 billion, as noted by Bloomberg.

Price Action

Dell's shares closed 0.63% higher at $52.88 on Friday.

Photo Credit: Public domain image via Wikimedia.

 

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