Dell SecureWorks files for IPO

Dell is putting its recently acquired SecureWorks firm on an initial public offering (IPO), hoping to raise money and mitigate the expenses it has for buying EMC.

There is no official comment on how much money the company is planning on earning from the IPO, but the media speculate that the expectations go as high as $1 billion (£660m).

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, The Register reports.

“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.

Dell bought SecureWorks in 2011 for $612 million (£410m), and in the first nine months of the fiscal 2015, it has brought in $245,4 million (£164,4m) in revenue, according to a Business Insider report.

A year earlier, it has earned $190,7 million (£127,7m).

Dell has recently announced it is acquiring EMC for a whopping $67 billion, a deal which might see the company in debt for as much as $40 billion. SecureWorks said it does not intend to transfer any net proceeds that are received from the IPO to Denali, Dell or “respective affiliates”.

It was also reported that Dell is planning to sell Perot Systems, its outsourcing business worth an estimated $5 billion. Dell acquired Perot in 2009 for $3.9 billion (£2.6bn) and has, according to Re/Code, already approached several international IT consultancies as potential buyers.