Computer maker Dell Technologies is exploring a sale of SecureWorks, a US provider of cyber security services with a market value of close to $2 billion, Reuters reported.
Dell holds 85 percent stake in SecureWorks. Dell will be able to trim its $50 billion debt, after it decided to become a publicly traded company through a complex deal involving its software subsidiary VMware Inc.
SecureWorks is working with investment bank Morgan Stanley on a sale process that is in its early stages.
SecureWorks said its revenue increased 13.6 percent to $133.1 million in the third quarter of fiscal 2019.
Gross margin of SecureWorks was 53.3 percent in the third quarter of fiscal 2019, compared with 52.8 percent in the same period last year.
SecureWorks has reported net loss of $3.7 million, or $0.05 per share, in the third quarter of fiscal 2019, compared with net loss of $9.4 million, or $0.12 per share, in the prior year.
Adjusted EBITDA was $8.6 million, compared with an adjusted EBITDA loss of $1.0 millionin the third quarter of fiscal 2018.
SecureWorks expects revenue of $520 to $521 million in fiscal 2019 and $565 to $575 million in fiscal 2020.
