Dell Technologies has unveiled plans to sell off security vendor RSA following agreement of a US$2 billion deal with Symphony Technology Group (STG).
Terms of the transaction will see a consortium of buyers - which also includes Ontario Teachers’ Pension Plan Board (Ontario Teachers’) and AlpInvest Partners (AlpInvest) - acquire the business in an all-cash deal which is expected to close within “six to nine months”.
The acquisition includes the purchase of RSA Archer, RSA NetWitness Platform, RSA SecurID, RSA Fraud and Risk Intelligence and RSA Conference.
“This is the right long-term strategy for Dell, RSA and our collective customers and partners,” said Jeff Clarke, COO of Dell Technologies. “The transaction will further simplify our business and product portfolio. It also allows Dell Technologies to focus on our strategy to build automated and intelligent security into infrastructure, platforms and devices to keep data safe, protected and resilient.”
According to Clarke, the acquisition follows more than three years of internal change at the technology giant, amid plans to simplify business structure and product portfolio lines.
“The strategies of RSA and Dell Technologies have evolved to address different business needs with different go-to-market models,” he added. “The sale of RSA gives us greater flexibility to focus on integrated innovation across Dell Technologies, while allowing RSA to focus on its strategy of providing risk, security and fraud teams with the ability to holistically manage digital risk.”
Until the transaction closes however, Clarke assured customers and partners that it was a case of “business as usual”.
“As we enter the next data decade, our customers need to secure and protect data everywhere it exists – at the edge, in the core and in cloud environments – and Dell Technologies is committed to continued innovation in security capabilities and services,” Clarke said.
“We continue to innovate across our portfolio with automated and intelligent security features, functionality and services built into infrastructure, platforms and devices to keep data safe, protected and resilient.”
RSA specialises in providing risk, security and fraud teams with the ability to manage digital risk, including threat detection and response, identity and access management, integrated risk management and omni-channel fraud prevention, serving more than 12,500 customers globally.
“As one of the world’s elite security brands, RSA represents a great opportunity for solving some of the rapidly developing customer challenges that go along with digital transformation,” added William Chisholm, managing partner at Symphony Technology Group.
“We are excited and fully committed to maximising the power of RSA’s talent, expertise and tremendous growth potential and continuing RSA’s strategy to serve customers with a holistic approach to managing their digital risk.”