Today we announced Dell’s intent to acquire SonicWALL, a leader in Unified Threat Management (UTM) solutions. This acquisition is an important next step in broadening Dell’s software portfolio in the critical area of security, which continues to be one of the biggest areas of concern for CIOs and IT executives in managing their IT environment. This segment of security is strategic with good projected growth. IDC estimates that the UTM segment will grow +13% per year through 2015.
SonicWALL’s solutions address key areas of UTM that include next generation firewall, intrusion prevention, virtual private networks, data loss protection, anti-virus/anti-malware, content filtering and application control. SonicWALL generated approximately $260M in revenue on a trailing 12 month basis and has approximately 950 employees with the majority of them residing in Research and Development.
The transaction is expected to close in early Q2 FY13 and is expected to be accretive to Non-GAAP earnings by the 2nd half of FY13. We are not disclosing the terms of the transaction. This transaction is consistent with our strategy of enhancing solutions for our customers and improving the long-term financial profile of our business.
You can listen to a replay of the webcast with Dell executives discussing the acquisition and access related material here.
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