Dell's cyber security subsidiary SecureWorks has been valued at up to $1.42bn ahead of an initial public offering.
SecureWorks filed to go public in December 2015. The S-1 form placed with the United States Securities and Exchange Commission (SEC) at the time offered a $100m placeholder figure before the valuation, though this has been exceeded by the company's new filing.
An amended S-1 form has now been filed. SecureWorks shares are expected to be priced between $15.50-$17.50 each, and the nine million Class A shares being offered could raise almost $160m, and will be listed on the Nasdaq under “SCWX”.
Dell's parent company, Denali, will own all 70 million shares of the Class B common stock, according to the S-1, with none of the Class A common stock. A Class B shareholder is entitled to 10 votes for every Class A single vote, leaving Denali with “approximately 86.1 per cent of our total outstanding shares of common stock and approximately 98.4 per cent of the combined voting power of both classes”.
Dell bought SecureWorks for $611m in 2011, and is looking to sell its non-core assets ahead of its planned $67bn acquisition of EMC. Other "non-core assets" for sale are believed to include Perot, Quest Software and SonicWall and Rapid Recovery (formerly AppAssure).
The $67bn record deal is requiring Michael Dell to take on a lot of debt, and will be the technology industry's biggest ever buyout. ®