PC maker Dell Inc. (DELL) on Tuesday said it has signed a definitive agreement to acquire SonicWALL, Inc., a provider of advanced network security and data protection. Financial terms of the transaction were not disclosed.
San Jose, California-based SonicWALL was founded in 1991 and focuses on products used for firewalls, secure remote access, email security, and backup and recovery.
John Swainson, president, Dell Software Group, said, "We are building a strategic software portfolio to address the needs of our customers with key assets in the fast-growing and highly profitable IT security solutions business."
He added, "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 acquisition brings Dell SonicWALL's Next-Generation Firewalls and Unified Threat Management Firewalls, complementing the company's security solutions portfolio. Dell said the deal will enable it to offer customers a broader range of enterprise offerings.
Similarly, Dell's existing PartnerDirect members will be able to sell SonicWALL solutions to meet their customers' IT security needs.
SonicWALL has private equity investment firm Thoma Bravo as the lead institutional investor. Thoma Bravo led an investor group, including the Ontario Teachers' Pension Plan, to acquire SonicWALL, formerly a public company, in 2010.
The transaction was approved by the board of directors of both companies. The deal is expected to close in the second quarter of Dell's fiscal 2013.
Dell intends to employ SonicWALL's 950 employees to the Dell team and plans continued investments to grow this business.
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