American multinational computer technology company Dell is selling its security unit RSA for $2.08 billion (R30 billion) to investors led by Symphony Technology Group, with Ontario Teachers’ Pension Plan Board and AlpInvest Partners as other partners of the consortium.
Dell took control of RSA after the historic 2016 $67 billion transaction that combined two global technology heavyweights – Dell and EMC – in what was then termed the largest technology merger in history.
The RSA transaction will include purchase of products RSA Archer, RSA NetWitness Platform, RSA SecurID, RSA Fraud and Risk Intelligence, and RSA Conference – the world’s largest security conference where experts discuss important cyber security trends, challenges, solutions and innovations.
In a statement, Dell says RSA provides risk, security and fraud teams with the ability to holistically manage digital risk, including threat detection and response, identity and access management, integrated risk management and omnichannel fraud prevention.
Additionally, the company notes more than 12 500 customers rely on RSA to enable their digital transformation, address increasingly advanced cyber threats and adapt to more complex digital regulations.
According to Dell, the deal is expected to be closed in the next six to nine months. The company didn’t disclose terms of the transaction.
Jeff Clarke, chief operating officer and vice-chairman of Dell Technologies, says: “This is the right long-term strategy for Dell, RSA and our collective customers and partners. 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.”
Representing the new investors, William Chisholm, managing partner at Symphony Technology Group, is optimistic about the future of RSA.
He says: “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.
“We are excited and fully committed to maximising 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.”