Sophos acquires Secureworks for USD $859 million

Sophos has completed the acquisition of Secureworks for USD $859 million.

The acquisition solidifies Sophos' position as a primary provider of Managed Detection and Response (MDR) services, now supporting over 28,000 organisations globally. The deal, structured entirely in cash, sees Secureworks' common stock ceasing public trading following closure.

The acquisition primarily aims to bolster Sophos' security operations platform, which integrates hundreds of applications to enhance protection, detection, and response to cyber threats. This development is intended to help organisations, particularly those with varied IT environments, protect current and future technological investments while ensuring greater efficiency and return on cybersecurity spending.

Sophos will also expand its threat intelligence capabilities, thanks to the addition of Secureworks' Counter Threat Unit and advisory teams. This enhancement aims to provide improved security services and technologies for Sophos' global network of resellers, Managed Service Providers (MSPs), and Managed Security Services Providers (MSSPs).

Joe Levy, CEO of Sophos, said, "The market is embracing MDR as a clear means to deliver positive cybersecurity outcomes, and this has meant rapid growth in the category. Sophos is differentiated by our very mature competencies in ransomware detection, malware analysis and threat actor tradecraft. These defenses are further augmented by Sophos' native artificial intelligence (AI), first innovated by our globally peer-recognised AI team nearly a decade ago, and embedded in our MDR, endpoint, network, email, and cloud security to more effectively neutralise and stop threats."

"With the integration of Secureworks, our expanded services and product portfolio will provide even stronger end-to-end security solutions that will include identity threat detection and response (ITDR), next-gen SIEM, and managed risk, all in a single open platform. We will also be able to further advance our AI, threat intelligence, and attack research through more diverse and deeper global telemetry that is analyst-tuned for the real-world. At every level, we are very excited about this next accelerated chapter for Sophos."

Sophos and Secureworks will continue business operations in the near term, collaborating with channel partners, MSPs, and MSSPs to distribute existing security services and technology. This will ensure continuity for existing customers and support the development of new business opportunities.

The transaction details reveal that Secureworks shareholders, including Dell Technologies, will receive USD $8.50 per share in cash, representing a 28% premium to Secureworks' 90-day volume-weighted average price. Kirkland & Ellis LLP served as legal counsel for Sophos. At the same time, a coalition of financial institutions, including Goldman Sachs, Barclays, and BofA Securities, provided financial advice and debt financing for the transaction. On Secureworks' side, Piper Sandler & Company and Morgan Stanley & Co. LLC acted as financial advisors, with Paul, Weiss, Rifkind, Wharton & Garrison LLP providing legal counsel.