The SEC filing for SecureWorks’ IPO arrived Thursday afternoon, following up a confidential filing that had come in October. So far, the filing doesn’t include details such as how many shares are being offered.
That story said SecureWorks could be valued at more than $1 billion. An October story in The Wall Street Journal upped that figure to $2 billion.
In July, the rationale for taking SecureWorks public was simply to bring capital into Dell. That motivation still holds, but with renewed urgency; Dell now needs to shore up its finances for the pending $67 billion acquisition of EMC.
Moreover, SecureWorks competes with RSA, which is part of the EMC Federation of subsidiaries.
Dell (Probably) Keeps Control
SecureWorks was acquired by Dell in 2011 for $612 million, and it became a wholly owned subsidiary of Denali Holdings — Dell’s parent company — when Dell was taken private in 2013.
Denali will continue to hold a stake in SecureWorks, and probably a controlling stake at that. While the percentages aren’t in the S-1, there’s a statement saying Denali’s shares — designated Class B — will be worth 10 votes apiece. Buyers in the IPO will be getting Class A shares worth one vote apiece.
It’s not just a power trip. Denali has to retain 80 percent of SecureWorks’ shareholder voting power if it wants any eventual spinoff of the business to be tax-free, according to the SEC filing.
SecureWorks is still losing money. For its third quarter, which ended Oct. 30, the company reported a net loss of $18.5 million on revenues of $88.2 million, compared with a loss of $8.8 million on revenues of $66.8 million for the same quarter a year ago.
SecureWorks had 2,013 full-time employees at the end of October.