Dell sells RSA Security to private equity firm for $2 billion

BREAKING News — Fewer than 1 week absent from RSA Meeting 2020, Dell has agreed to promote RSA Security for far more than $two billion.

On Tuesday, a consortium of investors led by Symphony Technological innovation Group (STG) agreed to get RSA in an all-funds transaction for $two.075 billion. The consortium contains Ontario Teachers’ Pension Approach Board and AlpInvest Companions. The deal contains the acquire of products these as RSA NetWitness System and RSA SecurID as very well as RSA Meeting, the world’s greatest infosec celebration.

RSA Security, an id and obtain administration vendor, was obtained by the storage large EMC in 2006 for just underneath $ billion in funds. The acquisition was intended to assist consumers manage obtain to info. At the time, a great deal of RSA’s achievements was credited to its preferred portfolio of SecurID multifactor authentication and its BSafe line of encryption and privacy products. RSA joined Dell with the acquisition of EMC in 2015.

Now, RSA will swap arms to STG, a non-public fairness organization headquartered in Palo Alto, Calif. STG’s portfolio contains a number of providers in info analytics and ecommerce program, but prior to the acquisition of RSA, the firm’s existence in cybersecurity was restricted to cyber threat vendor RedSeal.

“This is the correct long-expression technique for Dell, RSA and our collective consumers and companions,” Jeff Clarke, COO and vice chairman of Dell Technologies, reported in a push statement. “The transaction will further more simplify our small business and solution portfolio. It also enables Dell Technologies to aim on our technique to build automatic and intelligent safety into infrastructure, platforms and products to preserve info secure, secured and resilient.”

The Wall Street Journal very first reported the impending acquisition on Monday evening.

RSA President Rohit Ghai reported the acquisition is the correct move for the company’s upcoming. 

“In identifying the ideal way to support our customers’ digital journeys, we sought a partner that was enthusiastic about RSA’s mission dedicated to our client and partner base and fascinated in unleashing the electrical power of our talent, knowledge, and remarkable growth probable,” Ghai reported in a blog post. “Symphony Technological innovation Group (STG) entirely supports our vision, and with a far more independent configuration, we anticipate to be in an even improved position to accelerate innovation, make sure client achievements with our portfolio of on-prem and cloud answers, and broaden alternatives for our partner ecosystem.”

The transaction is expected to shut in the upcoming six to nine months.

Reporting in progress –full story to observe.