Dell Is Expected To Announce RSA Security Business Sale On Tuesday

Dell Technologies Inc.’s 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 StanleyMS 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 TOSBF, India’s Infosys Ltd. 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.