Dell has agreed to buy SecureWorks, a closely held computer security company, to expand its technology services business.
Dell, which did not disclose terms of its purchase, said on Tuesday it does not plan to buy any more security firms.
"Never say never about future acquisitions, but right now we are focused on SecureWorks. SecureWorks is our security platform going forward," said Peter Altabef, president of Dell Services.
The purchase comes as consolidation in the security space is picking up. Intel last year agreed to buy No. 2 security software maker McAfee for US$7.7 billion, while HP purchased security management firm ArcSight for US$1.5 billion.
"This shows that security is high on the priority list in the corporate infrastructure," said Daniel Ives, an analyst with FBR Capital Markets & Co.
SecureWorks sells security services that its customers access via the Internet. Dell plans to offer its products through its services division, which generates about US$8 billion of revenue per year.
Atlanta-based SecureWorks has about 700 employees. Its revenue for fiscal 2010 is expected to run around US$120 million, according to Dell.
(Reporting by Jim Finkle and Paul Thomasch; Editing by Derek Caney)