Sophos expands cybersecurity reach with Secureworks acquisition, fueling market consolidation
British cybersecurity firm Sophos is set to acquire competitor Secureworks from its current owner, Dell, for $859 million, or over €792 million.

Under the terms of the deal, Sophos will pay a 28 percent premium over Secureworks’ current share price. If approved by regulatory authorities, the acquisition is expected to close next year, further consolidating the cybersecurity industry.
Secureworks’ flagship product is its Taegis XDR platform, which focuses on threat detection for medium and large enterprises. The acquisition is expected to bolster Sophos’ existing Managed Detection and Response (MDR) capabilities. Sophos CEO Joe Levy commented that integrating the two companies’ products will strengthen Sophos’ market position and enhance service offerings for customers of all sizes.
Significant drop in value
Last summer, Secureworks had a market value of $800 million, or approximately €722 million. Dell had already been considering selling Secureworks as early as 2019, as part of a strategy to reduce its then $50 billion debt. Although Secureworks is partially publicly traded, its stock has dropped more than 66 percent since September 2021. The company has struggled to differentiate itself from larger competitors. As Secureworks prepares to delist, current investors will receive $8.50 per share.
Sophos is owned by private equity firm Thoma Bravo, which has been aggressively expanding its footprint in the cybersecurity sector. Its recent acquisitions include Darktrace for $5.3 billion, Imperva for $3.6 billion, SailPoint for $6.9 billion, and Proofpoint for an impressive $12.3 billion. In comparison, the Secureworks deal is relatively modest.
Billions in cybersecurity assets
Thoma Bravo now holds around $50 billion in cybersecurity assets and plays a significant role in the industry's ongoing consolidation. Recent acquisitions suggest that some cybersecurity companies are facing challenges.
Organizations are increasingly shifting toward larger platforms, the momentum gained during the COVID-19 pandemic is tapering off, and securing new funding is becoming more difficult. These trends have significant implications for certain players in the security industry. Not all acquisitions are multi-billion-dollar deals—some companies are changing hands for just a fraction of their previous value.