Sophos just wrapped up its $859 million acquisition of Secureworks, a managed cybersecurity services provider. This all-cash deal positions Sophos as a major player in Managed Detection and Response (MDR) services, now supporting over 28,000 organizations globally.
Secureworks, based in Atlanta, specializes in threat detection, response, and managed security. Bringing them on board strengthens Sophos’ security operations platform, which aims to help organizations fend off cyber attacks. Sophos emphasizes that its open, scalable platform will assist companies with diverse IT setups, enhancing their operational efficiency and return on cybersecurity investments.
Sophos X-Ops, the company’s threat intelligence division, gains capabilities from Secureworks’ Counter Threat Unit and its security operations and advisory teams. Joe Levy, CEO of Sophos, stated that the merger will enhance their service and product offerings, allowing for stronger end-to-end security solutions, including identity threat detection and next-gen SIEM—all within a single platform.
Sophos has been ahead of the game when it comes to AI, establishing a lead nearly ten years ago that helped solidify its top spot in the MDR market. Levy noted their expertise in ransomware detection, malware analysis, and understanding threat actors, which has fueled their success.
Secureworks was previously owned by Dell, which bought it in 2011 for $612 million. Dell held a significant chunk of the company but has been looking to sell for a while, struggling with differentiation in a crowded market.
Meanwhile, Sophos is seeing growth—reporting a turnover of £644 million in March 2024, a 5.4% increase, with profits jumping from £100.1 million to £183.2 million. Dell and other Secureworks shareholders will cash in at $8.50 per share with this acquisition, first announced last October. For now, both companies will keep operating independently as they serve their clients and explore new business avenues.
The landscape for cybersecurity is heating up, driven by increasing sophistication in cyber attacks, amplified by AI. Companies are racing to deliver comprehensive solutions. This year, there’s been a flurry of big deals: Cisco acquired Splunk for $28 billion, Mastercard picked up Recorded Future for $2.65 billion, and Thoma Bravo bought AI firm Darktrace for $5.3 billion, adding to its earlier acquisition of Sophos for $3.9 billion. Other security players like 1Password and WatchGuard have also jumped into the acquisition fray recently.
