Sophos Set to Acquire Secureworks for USD $859M, Accelerate Cybersecurity Services Worldwide
Sophos Intends to Integrate Solutions from Both Companies into a Broader and Stronger Security Portfolio
Sophos and Secureworks®, two global leaders of innovative security solutions for defeating cyberattacks, have announced a definitive agreement for Sophos to acquire Secureworks. The all-cash transaction is valued at approximately USD $859 million. Sophos is backed by Thoma Bravo, a leading software investment firm.
Sophos’ experience and reputation as a leading provider of managed security services and end-to-end security products, combined with Secureworks’ security operations expertise transformed into the Taegis™ platform, is expected to further deliver complementary advanced MDR and XDR solutions for the benefit of their global customer bases. Together, they will help strengthen the resilience and security posture of global organisations of any size with a combination of security controls, Artificial Intelligence, world-class threat intelligence, and two teams with decades of cybersecurity expertise.
Sophos and Secureworks to Integrate Expertise, Solutions
Sophos expects to integrate solutions from both companies into a broader and stronger security portfolio benefiting enterprise customers of all sizes.This includes Sophos expanding its current portfolio with other new offerings like identity detection and response (ITDR), next-gen SIEM capabilities, operational technology (OT) security, and enhanced vulnerability risk prioritisation. As two partner-centric organisations, the combination of Sophos and Secureworks will enable the combined company to expand its market presence to create greater value within the channel and strengthen the overall security community.
“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 Joe Levy, CEO at Sophos. “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.”
Cyber risk continues to escalate, driven by a rampant cybercriminal ecosystem and global geopolitical pressures. Combined, Sophos and Secureworks share a long history of having exceptional threat intelligence, security operations, incident response, and innovative security product capabilities that help organisations defeat these adversaries.
“Our mission at Secureworks has always been to secure human progress. 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,” said Wendy Thomas, CEO at Secureworks. “As Joe and I both believe, this transaction will strengthen our go-to-market offering with Sophos’ global scale, expertise and reputation.”
Transaction Details
Under the terms of the agreement, Sophos intends to acquire Secureworks in an all-cash transaction valued at USD $859 million. Secureworks shareholders, including Dell Technologies, will receive USD $8.50 per share in cash. This represents a 28% premium to the unaffected 90-day volume-weighted average price (VWAP). The transaction is expected to close in early 2025, subject to customary closing conditions. Additional information regarding this announcement can be found in the Form 8-K filed by Secureworks with the United States Securities and Exchange Commission (SEC) on Oct. 21, 2024.
Kirkland & Ellis LLP is acting as legal counsel to Sophos and Goldman Sachs & Co. LLC., Barclays, BofA Securities, HSBC Securities (USA) Inc. and UBS Investment Bank are acting as financial advisors and providing debt financing for the transaction. Piper Sandler & Company and Morgan Stanley & Co. LLC are acting as financial advisors to Secureworks and Paul, Weiss, Rifkind, Wharton & Garrison LLP is acting as legal counsel.
