Dell Sells RSA Security for $2.1 Billion to Simplify Portfolio
Dell Technologies is offloading its cybersecurity division RSA Security to a consortium for $2.1 billion in cash. The move allows Dell to streamline its business and focus on integrating automated security directly into its core solutions.
Dell Technologies is selling its cybersecurity arm RSA Security for nearly $2.1 billion to a consortium that includes Symphony Technology Group, Ontario Teachers' Pension Plan Board, and AlpInvest. The all-cash transaction encompasses major RSA products like RSA Archer, RSA NetWitness Platform, and RSA SecurID, and the deal is expected to close within six to nine months.
This divestment is part of Dell's ongoing effort to simplify its business structure following its massive $67 billion acquisition of EMC in 2016. Since the EMC purchase, Dell owns several specialist companies outside of its core hardware and storage business, but these segments fail to meet the financial requirements to be considered a reportable segment unlike the highly disruptive and growing VMware.
By shedding RSA, Dell focuses on embedding automated, intelligent security directly into its primary solutions rather than maintaining a standalone cybersecurity division. Despite this sale, Dell maintains a strong overall position in the security market as it continues to refine its massive product portfolio.