Security provider Sophos has announced it intends to acquire Secureworks for around $859 million. The deal will be settled in cash.
Secureworks shareholders will receive $8.50 per share, which represents a 28% premium on the average value of the stock calculated over the past 90 days. The takeover is expected to be completed in early 2025, provided all regulatory requirements are met.
Sophos said the two companies’ solutions will be integrated into a broader, stronger security portfolio. That expanded portfolio will include new offerings such as identity threat detection and response (ITDR), next-generation SIEM capabilities, operational technology (OT) security, and improved vulnerability risk prioritization.
The merger of Sophos and Secureworks will enable the combined company to expand its market presence and create greater value within the channel, according to Sophos.
XDR meets MDR
“Secureworks offers an innovative, market-leading solution with their Taegis XDR platform,” said Sophos CEO Joe Levy in a release about the acquisition. In combination with its own security solutions for managed detection and response (MDR), the merger strengthens the joint market position, he said.
“Sophos’ portfolio of leading endpoint, cloud, and network security solutions — in combination with our XDR-powered managed detection and response — is exactly what organizations are looking for to strengthen their security posture and collectively turn the tide against the adversary,” added Wendy Thomas, CEO of Secureworks.
Nothing is yet known about the future roles of both CEOs.
Secureworks is deep in the red
Sophos was founded in 1985. In early 2020, Thoma Bravo investors acquired the British security software provider for $3.9 billion and delisted Sophos from the stock exchange. Current CEO Joe Levy only took over the position in February 2024 after his predecessor Kris Hagerman resigned.
Secureworks, founded in 1998, was acquired by Dell in 2011 and listed on the stock exchange in April 2016. Dell remains the majority shareholder. Michael Dell also serves as Chairman of Secureworks.
Financially, things have been going rather poorly for the security provider recently. In the 2024 fiscal year, which ended in early February, revenues amounted to $365.9 million, 21% less than in the previous year ($463.5 million). The bottom line is that the manufacturer posted a deficit of $86 million, after a loss of $114.5 million in the 2023 fiscal year. Secureworks also reported declining revenues and red figures in the first two quarters of the current 2025 fiscal year.