Sophos to Acquire Secureworks in $859M Cybersecurity Deal

Sophos revealed plans on Monday to acquire Secureworks for $859 million, aiming to enhance its cybersecurity platform with Secureworks’ XDR (extended detection and response) capabilities.

The acquisition will combine two major players in cybersecurity: Secureworks, a public company majority-owned by Dell Technologies, and Sophos, which operates under private equity firm Thoma Bravo’s ownership.

Sophos expects to complete the all-cash purchase of Secureworks, which has a workforce of 1,500 employees, in early 2025. This development follows earlier reports by Reuters in August that Dell was considering selling Secureworks to private equity investors.

CEOs share vision for combined company

“Secureworks offers an innovative, market-leading solution with their Taegis XDR platform,” said Sophos CEO Joe Levy. “Combined with our security solutions and industry leadership in MDR, we will strengthen our collective position in the market and provide better outcomes for organizations of all sizes globally. Secureworks’ renowned expertise in cybersecurity perfectly aligns with our mission to protect businesses from cybercrime by delivering powerful and intuitive products and services. This acquisition represents a significant step forward in our commitment to building a safer digital future for all.”

Strategic benefits and enhanced portfolio

Dell Technologies has a controlling stake in Secureworks, owning 83% of the company’s outstanding common stock. Meanwhile, Sophos has been operating under Thoma Bravo’s ownership since the private equity firm purchased it for approximately $4 billion in early 2020.

The merger aims to strengthen Sophos’s security offerings across all customer segments from small businesses to large enterprises. The expanded portfolio will incorporate new capabilities including:

• Identity threat detection and response (ITDR)
• Next-generation SIEM technology
• Operational technology security
• Advanced vulnerability risk assessment

Both companies emphasized their shared commitment to partner-focused business models. They stated that their combination will boost their channel presence and deliver increased value to their partner network while strengthening the broader security ecosystem.

“Our mission at Secureworks has always been to secure human progress. 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,” said Wendy Thomas, CEO of Secureworks. “As Joe and I both believe, this transaction will strengthen our go-to-market offering with Sophos’ global scale, expertise and reputation.”

Deal terms and advisors

Sophos will acquire Secureworks for $859 million in cash, paying shareholders $8.50 per share, a 28% premium over the 90-day volume-weighted average price. The deal is expected to close in early 2025, pending standard closing conditions.

Goldman Sachs, Barclays, BofA Securities, HSBC, and UBS are providing financial advice and debt financing to Sophos, with Kirkland & Ellis serving as legal counsel. Secureworks is being advised by Piper Sandler and Morgan Stanley, with Paul Weiss as legal counsel.

Read more about why Sophos was rated best for advanced features in our guide to the best MDR providers for 2025.