If you are at this week's RSA Conference in San Francisco, perhaps you are hearing that the conference is being sold.
Yes, that is true.
Dell Technologies announced the sale last week. Here are some details and analysis of the sale.
Who is buying RSA?
An investor consortium led by Symphony Technology Group (STG), Ontario Teachers' Pension Plan Board (Ontario Teachers'), and AlpInvest Partners (AlpInvest) agreed to buy RSA for $2.075 billion.
"As one of the world's elite security brands, RSA represents a great opportunity for solving some of the rapidly developing customer challenges that go along with digital transformation," said William Chisholm, Managing Partner at Symphony Technology Group.
The purchase includes RSA Archer, RSA NetWitness Platform, RSA SecurID, RSA Fraud and Risk Intelligence, and yes, even the RSA Conference brand.
Why did Dell sell RSA?
Dell claims the reason it sold RSA is that it simplifies its lines of business.
"This is the right long-term strategy for Dell, RSA and our collective customers and partners," said Jeff Clarke, Chief Operating Officer and Vice Chairman, Dell Technologies. "The transaction will further simplify our business and product portfolio."
However, Dave Vellante, Chief Analyst at SiliconANGLE research firm Wikibon, says this sale is about getting rid of debt:
As for RSA Security and Symphony Technology Group's acquisition of it, the most important takeaway is that the deal underscores how Dell is choosing liquidity over its most prominent cybersecurity asset. Dell is still paying off the massive debt it accrued when it paid $67 billion to acquire EMC Corp. back in 2017.
"It says to me that [Dell's] ability to pay down debt is much more important to their go-forward plan," Vellante said. "Remember, for every $5 billion Dell pays down in gross debt, it drops 25 cents to earnings per share. This is important for Dell to get back to investment grade debt, which will further lower its costs."
The sale is projected to close within the next six to nine months.
