Dell security subsidiary SecureWorks is trying to raise funds for working capital and acquisitions, according to a filing with the SEC.
The S1 Form lodged last night indicates the division expects to sell up to $100m in stock but this is a placeholder figure that could change before the flotation.
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Under the terms of the plan, SecureWorks will sell Class A common stock to Joe Public and institutional investors and Denali Holding, Dell’s ultimate parent, will indirectly own Class B stock.
“We intend to use the net proceeds we receive from this offering for working capital and other general corporate purposes,” SecureWorks stated in the SEC document.
This includes financing growth, developing new stuff, funding cap-ex investments, and “acquisitions of complementary businesses, services or technologies”, the filing added.
Dell is acquiring EMC for $67bn but is taking on a heap of debt, estimated to be $40bn, to fund the transaction. SecureWorks said it does not intend to transfer any net proceeds that are received from the IPO to Denali, Dell or “respective affiliates”.
CEO Michael Dell is also believed to be considering selling off other assets deemed non-core – including Perot, Quest Software and SonicWall and Rapid Recovery (formerly AppAssure).
Dell took over SecureWorks for $612m in 2011. It has 2,400 staff and 4,100 customers in 61 countries - including Bank of America, which accounts for 12 per cent of turnover.
In the nine months ended 30 October, SecureWorks lost $57.5m net on sales of $245.4m, compared to revenue of $190.7m and net losses of $29.5m in the same period of the previous year.
In fiscal ’15 ended 30 January, revenues were $262m up from $205.8m, and it reported a net loss of $38.5m versus a net loss of $44.5m the year before. ®