Home CompaniesB2B Atlanta-based SecureWorks Files for IPO Under Dell

Atlanta-based SecureWorks Files for IPO Under Dell

by Kiki Roeder

Dell is currently in a race to close an estimated $10 billion financing gap to acquire EMC. In this sprint, late last week, it announced an initial public offering (IPO) of its security division, SecureWorks. The Atlanta-based cybersecurity leader is expected to raise $100 million from stock sales under the ticker SCWX.

The silicon giant purchased SecureWorks for $612 million in 2011. SecureWorks recently brought in $88 million in sales during a three-month period in the company’s third quarter, which increased 32% from the $67 million it generated during the same period in 2014. It has shown both expansions in its top line and gross margin, yet has also posted notable losses. Its loss rate is considerable next to its current cash position, which is reported to be just $39.4 million.

The situation with SecureWorks is complicated, yet offers a purposeful solution for Dell. After news broke of the “biggest in deal tech history,” Dell has been looking for ways to raise money to support its acquisition of EMC. A whooping total of $67 billion, in fact. 

SecureWorks, which competitors include FireEye, IntelliTactics, Palo Alto Network and Cisco, is a security service that offers intelligence-driven information solutions focused on protecting clients from cyber attacks. Its solutions specifically enable organizations to fortify their cyber defenses to prevent security breaches, detect malicious activity in real time, rapidly respond to security breaches, and predict emerging threats.

To learn more about SecureWorks, visit them online via their LinkedIn and Facebook pages. Additional details about the IPO are available through a statement on the company’s website.

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