TL;DR
- Sophos has acquired Secureworks for $859 million in an all-cash deal, making it a leading provider of Managed Detection and Response (MDR) services. Secureworks’ stock has been delisted from Nasdaq.
- The acquisition strengthens Sophos’ security platform with built-in integrations for adaptive protection, detection, and response, benefiting over 28,000 organizations globally.
- Secureworks’ Counter Threat Unit™ and security teams will enhance Sophos’ AI-driven threat research and global telemetry.
- SSophos and Secureworks will continue operations as usual in the short term while integrating services for a more comprehensive cybersecurity offering.
Sophos has finalized its acquisition of Secureworks [NASDAQ:SCWX ], a move that solidifies its position as a top provider of Managed Detection and Response (MDR) services.
The all-cash deal, valued at approximately $859 million, marks a significant step in Sophos’ strategy to expand its cybersecurity offerings.
With this acquisition, Secureworks’ common stock has ceased trading on Nasdaq. Sophos, backed by Thoma Bravo, a leading software investment firm, is now set to deliver a more robust and integrated security platform.
What This Acquisition Means for Sophos and Secureworks
The acquisition positions Sophos as the leading pure-play cybersecurity provider of MDR services, supporting over 28,000 organizations globally.
By combining forces, Sophos and Secureworks aim to create an unparalleled security operations platform. This platform will feature hundreds of built-in integrations for adaptive protection, detection, and response, helping organizations mitigate cyberattacks more effectively.
The integration of Secureworks’ Counter Threat Unit™ and security operations teams will enhance Sophos X-Ops’ threat intelligence and security services capabilities.
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This move is particularly beneficial for organizations with diverse IT estates, as the open and scalable platform will safeguard current and future technology investments while improving operational efficiency and return on cybersecurity spending.
Commitment to Channel Partners
Sophos has always been a channel-first cybersecurity provider, and this acquisition reinforces its commitment to resellers, Managed Service Providers (MSPs), and Managed Security Services Providers (MSSPs).
The combined capabilities of Sophos and Secureworks will expand the reach of these partners, enhance operational scalability, and provide stronger defenses against increasingly complex cyberattacks.
Joe Levy, CEO of Sophos, emphasized the importance of MDR in delivering positive cybersecurity outcomes. He highlighted Sophos’ strengths in ransomware detection, malware analysis, and threat actor tradecraft, which are further augmented by its native artificial intelligence (AI).
This AI, first developed nearly a decade ago, is embedded in Sophos’ MDR, endpoint, network, email, and cloud security solutions.
Levy also noted that the integration of Secureworks will enable Sophos to offer even stronger end-to-end security solutions, including identity threat detection and response (ITDR), next-gen SIEM, and managed risk, all on a single open platform.
Immediate Impact and Future Plans
In the near term, Sophos and Secureworks will operate business as usual, working with their respective channel partners, MSPs, and MSSPs worldwide.
Both companies’ sales and customer experience teams will continue to support existing customers, assist with renewals, and develop new business opportunities.
Sophos currently protects over 600,000 customers globally with its portfolio of MDR, endpoint, network, email, and cloud security solutions. These solutions integrate through the Sophos Central platform, providing real-time defense against cyber threats.
Transaction Details
The acquisition was an all-cash transaction valued at approximately $859 million. 8.50 per share in cash. This represents a 28% premium to the unaffected 90-day volume-weighted average price (VWAP).
Kirkland & Ellis LLP acted as legal counsel to Sophos, while Goldman Sachs & Co. LLC, Barclays, BofA Securities, HSBC Securities [USA] Inc., and UBS Investment Bank served as financial advisors and provided debt financing for the transaction.
Piper Sandler & Company and Morgan Stanley & Co. LLC acted as financial advisors to Secureworks, with Paul, Weiss, Rifkind, Wharton & Garrison LLP providing legal counsel.
What’s Next for Sophos and Secureworks?
The integration of Secureworks into Sophos’ ecosystem is expected to accelerate innovation in AI, threat intelligence, and attack research.
With access to more diverse and deeper global telemetry, Sophos aims to enhance its ability to detect and neutralize threats in real-time.
For customers and partners, this acquisition means access to a broader range of security solutions and services, all designed to provide stronger defenses against evolving cyber threats.
