Dell Technologies (NYSE: DELL) on Tuesday said that it has agreed to sell its RSA Security unit to a private equity group for roughly $2.075 billion in cash.
Under the terms of the agreement, a consortium led by Symphony Technology Group, Ontario Teachers’ Pension Plan Board and AlpInvest Partners, will acquire RSA assets including RSA Archer, RSA NetWitness Platform, RSA SecurID, RSA Fraud and Risk Intelligence and the RSA Conference.
RSA ended up under Dell’s umbrella after Dell acquired storage giant EMC in 2016, which had previously acquired RSA for roughly $2.1 billion in 2006.
“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,” said William Chisholm, Managing Partner at Symphony Technology Group. “We are excited and fully committed to maximizing 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.”
“This is the right long-term strategy for Dell, RSA and our collective customers and partners,” said Jeff Clarke, Chief Operating Officer and Vice Chairman, Dell Technologies. “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.”
The transaction is expected to close in the next six to nine months, subject to customary conditions.
“Until the transaction closes, it will be business as usual,” RSA president Rohit Ghai wrote in a blog post. “RSA, STG and Dell Technologies will work closely together after the transaction closes to ensure a smooth transition.”