Dell buys SonicWall, presumably for $1.25 billion

PanARMENIAN.Net - Dell said Tuesday, March 13, that it had agreed to buy SonicWall, a privately held provider of data security measures for businesses, to continue expanding its corporate services offerings, the New York Times reported.

The purchase price was undisclosed, but a person briefed on the matter told DealBook that Dell paid about $1.25 billion, including the assumption of SonicWall’s debt.

Dell will gain a provider of high-grade networking security services, which include network firewalls, e-mail protection and backup and recovery offerings. SonicWall, which was founded in 1991, says it has more than 300,000 customers in 50 countries.

In a nod to the highly litigious landscape increasingly found in the tech world, SonicWall noted that it holds more than 130 patents.

“We are building a strategic software portfolio to address the needs of our customers with key assets in the fast-growing and highly profitable I.T. security solutions business,” John Swainson, the president of Dell’s software group, said in a statement. “SonicWall gives Dell access to unique intellectual property resources and technology that position us well in fast growing parts of the software security business.”

The deal will provide a hefty return for SonicWall’s majority owner, Thoma Bravo, the private equity firm. It bought a controlling stake in SonicWall in 2010 for about $717 million in cash.

The transaction is expected to close by the end of the second quarter of Dell’s 2013 fiscal year. Dell was advised by the law firm Dewey & LeBoeuf, and SonicWall was advised by the law firm Kirkland & Ellis.