Dell to buy SonicWall

Powered by SC Magazine
 

Deal worth up to US$1.5 billion.

Dell has agreed to buy network security products maker SonicWall from an investor group as the world's No. 3 personal computer maker tries to tap growing demand to protect corporate networks.

Dell is trying to boost profit margins by focusing on being a one-stop shop for business customers by adding products in areas including security, storage and cloud computing so it can rely less on the PC business for which it is best known.

"There's an opportunity to have higher growth margins and higher operating margins," FBN Securities analyst Shebly Seyrafi said.

This is the first deal for Dell after John Swainson took over as its software chief last week with a mandate to expand its software capabilities.

Swainson said it had been in the works long before he had been hired.

Though financial terms were not disclosed, investors and analysts are estimating the purchase price to be between $US1 billion and $US1.5 billion.

On a conference call with analysts, Dell said it will fund the deal with cash but declined to divulge the purchase price.


Dell to buy SonicWall
Tags
 
 
 
Top Stories
Microsoft confirms Australian Azure launch
Available from next week.
 
NBN Co names first 140 FTTN sites
National trial extended.
 
Cloud, big data propel bank CISOs into the boardroom
And this time, they are welcome.
 
 
Sign up to receive iTnews email bulletins
   FOLLOW US...
Latest Comments
Polls
In which area is your IT shop hiring the most staff?




   |   View results
IT security and risk
  25%
 
Sourcing and strategy
  12%
 
IT infrastructure (servers, storage, networking)
  23%
 
End user computing (desktops, mobiles, apps)
  13%
 
Software development
  26%
TOTAL VOTES: 235

Vote
Would your InfoSec team be prepared to share threat data with the Australian Government?

   |   View results
Yes
  62%
 
No
  38%
TOTAL VOTES: 72

Vote