Thoma Bravo-backed cyber security firm Sophos will acquire Secureworks from Dell Technologies for US$859 million ($1.3 billion) in cash to strengthen its product lineup for enterprise customers.
Secureworks shareholders, including Dell, will receive US$8.50 per share.
Founded in 1998, Secureworks’ flagship cloud-based platform Taegis helps detect advanced threats, according to its website.
But the company has struggled to differentiate its products in its race with bigger cyber security providers.
It reported a quarterly loss of 17 US cents per share in the quarter ended July 31.
Its owner Dell had investment bankers from Morgan Stanley and Piper Sandler assess takeover interest from potential buyers, including private equity firms, after earlier unsuccessful sale attempts, Reuters had reported.
Dell acquired Secureworks for US$612 million in 2011 before listing its shares through an initial public offering in New York in 2016.
It earlier explored a sale of Secureworks in 2019.
Thoma Bravo, meanwhile, is building a portfolio of cyber security assets and had acquired UK’s Darktrace for around US$5.3 billion earlier this year.
The transaction is expected to close in early 2025.