Dell's universe expands again with security acquisition

Computer giant buys SecureWorks

Dell Corp. has announced a definitive agreement to acquire SecureWorks Inc., an information security company that will expand the computer giant’s portfolio of on-demand IT services.

Details of the cash transaction were not reported.

The acquisition of SecureWorks will mark “a significant expansion of Dell’s IT as a service offerings and information security expertise,” Dell Services President Peter Altabef said in a media conference call today.

“The context for this acquisition and Dell’s other M&A activity is that customers increasingly want technology solutions delivered as a service,” he said.

“SecureWorks’ industry-leading managed-security services help companies of all sizes reduce risk, improve regulatory compliance and lower costs of managing IT security,” a company statement released today said.

The acquisition is the latest strategic investment by Dell as it expands its portfolio of enterprise-class IT-as-a-Service solutions and helps clients drive efficiency across the enterprise, according to the statement.

Altabef said he expects the acquisition will further expand Dell Services’ offerings to the Defense Department and other government agencies that include the intelligence community.

Dell and its government unit, Dell Services, have a broad portfolio of contractual work within the federal sector “that will make it a lot easier for SecureWorks to expand inside the government,” he said.

Founded in 1999, SecureWorks serves more than 2,900 clients in 70 countries, including more than 15 percent of the Fortune 500, from its headquarters in Atlanta.

Altabef said SecureWorks’ executive team will remain with the company.

Michael Cote, chairman and CEO of SecureWorks, said the company’s annual revenue is about $120 million, 90 percent of which come from services contracts.

The acquisition, which Altabef said will close within 40 days follows Dell’s agreement last month to acquire Compellent Technologies Inc., a data-storage company, for $820 million.

Dell Computer Corp., of Round Rock, Texas, ranks No. 11 on Washington Technology’s 2010 Top 100 list of the largest federal government contractors.

About the Author

David Hubler is the former print managing editor for GCN and senior editor for Washington Technology. He is freelance writer living in Annandale, Va.

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