M&A · Tech · Services-Prepackaged Software
Sophos Inc. to acquire SecureWorks Corp
Announced Oct 21, 2024 · Closed Feb 3, 2025
Deal value$859MEV $859M
Premium—To unaffected price
EV / Adj. EBITDA—2.5x EV / Revenue
ConsiderationAll cash$8.50 per share
Transaction
- Acquirer
- Sophos Inc.
- Target
- SecureWorks Corp (SCWX)
- Buyer type
- Strategic
- Offer price per share
- $8.50
- Enterprise value
- $859M
- Status
- Closed Feb 3, 2025
Deal protections
- Break fee (target pays)
- $26.0M · 3.0%
- Reverse fee (buyer pays)
- $52.0M · 6.1%
- Go-shop
- No-shop
- Financing
- Committed · Morgan Stanley
Advisors
- To the acquirer
- Not disclosed
- To the target
- Piper Sandler, Morgan Stanley
- Morgan Stanley fee
- $7.5M
- Piper Sandler fee
- $6.5M
Sector context · Tech
- Comparable deals
- 57 in the prior 24 months
- Premium
- Sector median 43.0%
- EV / Adj. EBITDA
- Sector median 14.7x
- Break fee
- 3.0% vs. 3.0% sector median
Timeline
- AnnouncedOct 21, 2024
- Proxy filedNov 12, 2024
- Definitive proxyNov 22, 2024
- Shareholder vote—
- ClosedFeb 3, 2025
Valuation · fairness opinions
Analyst price targetsMorgan Stanley$4.90$8.25
Analyst price targetsMorgan Stanley$4.44$7.47
Trading comparablesPiper Sandler$8.07$13.81
Trading comparablesPiper Sandler$8.16$13.33
Trading comparablesPiper Sandler$2.24$3.68
Trading comparablesPiper Sandler$6.17$9.05
Trading comparablesPiper Sandler$6.72$9.06
Offer $8.50
Implied value per SecureWorks Corp share by analysis, from Morgan Stanley and Piper Sandler · DCF discount rate 9.5%–11.5%.