Private equity firm Symphony Technology Group leads consortium in acquiring company
Dell Technologies is finally pulling the trigger on a deal to shed RSA Security, selling the security business to a group led by private equity firm Symphony Technology Group (STG) for more than $2 billion.
The Lowdown: Rumors of Dell selling RSA have been circulating for months, most recently with a report this week in The Wall Street Journal.
The Details: The Ontario Teachers’ Pension Board and AlpInvest Partners are joining STG in buying RSA, which Dell inherited when it bought storage giant EMC for more than $$60 billion in 2016. The deal is expected to close within six to nine months.
RSA offers a broad range of security products, including RSA Archer (for IT and security risk management), the NetWitness platform (threat detection and response), SecurID (incident and access management), and Fraud and Risk Intelligence suite. STG also will get the annual RSA Conference, a top security show. The next one is scheduled for next week in San Francisco.
EMC bought RSA in 2006 for $2.1 billion and was one of a number of companies – including VMware, Pivotal, and Virtustream – that Dell acquired in the EMC deal. In recent years, Dell has been working to embed more security within its infrastructure offerings and also has another security company, Secureworks, in the fold. In addition, other Dell companies – such as VMware, with its $2.1 billion acquisition of Carbon Black – are acquiring their own security capabilities.
Background: RSA says on its website that it has about 2 billion customers worldwide, protects about 30,000 businesses, and manages more than 50 million identities.
The Buzz: “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,” said William Chisholm, managing partner at STG. “We are excited and fully committed to maximizing 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.”
“This is the right long-term strategy for Dell, RSA, and our collective customers and partners,” said Dell COO and Vice Chairman Jeff Clarke. “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.”
“In determining the best way to support our customers’ digital journeys, we sought a partner that was enthusiastic about RSA’s mission; committed to our customer and partner base; and interested in unleashing the power of our talent, experience, and tremendous growth potential,” RSA President Rohit Ghai wrote in a blog post. “Symphony Technology Group fully supports our vision, and with a more independent configuration, we expect to be in an even better position to accelerate innovation, ensure customer success with our portfolio of on-prem and cloud solutions, and expand opportunities for our partner ecosystem.”