The S-1 filing cites a nominal $100 million as the amount of capital that could be raised from the IPO but no pricing or volume details were included. The proceeds of the IPO will be used for "working capital and other general corporate purposes."
However, the catalyst for the listing appears to be Dell's bid to acquire EMC for $67 billion, which was announced in October. (See Dell Buys EMC for $67B in Biggest Tech Deal Ever.)
Dell is looking for different ways to raise money to support that monster takeover and is believed to be seeking to offload a number of units, including part of its outsourcing services business, for which it is thought to be seeking more than $5 billion.
SecureWorks, which was acquired by Dell in February 2011 for $612 million, would not raise nearly as much. It generated revenues of $262.1 million and reported an operating loss of $61.1 million in its fiscal year 2015, which ended on January 30.
In the first nine months of the current fiscal year (up to October 30), the security specialist generated revenues of $245.4 million, up 29% from the same period a year earlier, and incurred an operating loss of $83.5 million. Those operating losses are likely to be very closely scrutinized by any potential investors.
In the managed security services sector, SecureWorks competes with the likes of IBM, AT&T, Verizon, Symantec, HP and CSC.
For more on cybersecurity issues, see:
- Polymorphic Attacks Reshape Security Landscape
- FBI Investigating Juniper VPN Hack
- Facebook: Cultural Change Needed for Better Security
- Level 3: Enterprises Have Frayed Approach to Data Protection
- Verizon: Cyber Attacks Hit New Targets in New Ways
— Ray Le Maistre, , Editor-in-Chief, Light Reading