Dell to sell cybersecurity unit RSA for $2.08bn to downsize $12.3bn in core debts

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Dell to sell cybersecurity unit RSA for $2.08bn to downsize $12.3bn in core debts

On Tuesday, the 18th of February 2020, the Round Rock, Texas-based American multinational technology conglomerate, Dell Technologies, engaged in a swathe of sectors ranging from computer software business to cybersecurity to personal computer manufacturing, employing roughly 157,000 workers across the globe as of December 31st, 2019, said that the company’s management board had agreed to sell off its cybersecurity unit RSA Security LLC., the Bedford-based cyber security company mostly focused on encryption and encryption standards, for a stark sum of $2.08 billion to a syndicate led by Symphony Technology Group, AlpInvest Partners alongside Ontario Teachers’ Pension Plan Board.

In point of fact, Dell Technologies’ latest move to axe its cybersecurity unit to free up a sum of $2.08 billion came against a baleful backdrop of the US-based tech tycoon which had been scuffling to pay off a roughly $12.3 billion in core debts, while its latest asset sales might cushion the company’s Q1, 2020 revenue forecast, suggested analyst.

Nonetheless, on the flipside of the coin, a sale of RSA, which had been one of the high profit-margin subsidiaries of Dell Technologies, could underscore the company’s struggle to offload its havoc-scale debt-pile, however, followed by Tuesday’s (February 18th) Dell Technologies’ announcement, shares’ prices of the of Massachusetts-based computer software company had round off the day 0.21 per cent lower to $52.77 after falling as much as 1 per cent in the pre-market trading.

The deal was expected to be concluded by the third or fourth quarter of the year, said the companies in a joint statement.