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STG-Led Consortium to Buy Dell’s RSA Business for $2B Cash

Jeff Brody

A Symphony Technology Group-led consortium has agreed to purchase Dell Technologies' (NYSE: DELL) cybersecurity business RSA for approximately $2.075B in cash.

The transaction — which all parties expect to close within six to nine months — covers RSA's Archer, Conference, NetWitness Platform, SecurID, Fraud and Risk Intelligence offerings, Dell said Tuesday.

Jeff Clarke, chief operating officer and vice chairman of Dell Technologies, said he expects the sale to "further simplify our business and product portfolio."

Clarke added the technology company wants to refocus on its strategy to incorporate security approaches into devices, infrastructure and systems as part of data safety, protection and resiliency efforts.

“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," said William Chisholm, managing partner of STG.

RSA became part of Dell when the latter acquired EMC in 2016 and maintains a portfolio of digital risk management, fraud prevention, identity and access management, threat detection and cyber response offerings.

Palo Alto, Cali.-based STG teamed up with and AlpInvest Partners and Ontario Teachers’ Pension Plan Board to acquire the security venture.

Morgan Stanley & Co. and Hogan Lovells respectively act as Dell's financial and legal advisers.

STG’s financial advisers on the transaction are Jeffries LLC and UBS Investment Bank, while Davis Polk & Wardwell LLP acts as the private equity firm's legal adviser. UBS and Jeffries Finance help STG finance the deal.

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