As part of the transaction, Secureworks shareholders will receive $8.50 per share, reflecting a 28% premium over the company's recent stock price.

Sophos aims to integrate the solutions of both companies to enhance their security offerings for small, mid-sized, and enterprise customers.

Thoma Bravo, which acquired Sophos for over $3 billion in 2020, has been actively acquiring security firms, including Darktrace and Imperva.

The acquisition is expected to be finalized in early 2025, pending regulatory approval.

British cybersecurity firm Sophos has announced its acquisition of competitor Secureworks for approximately $859 million in an all-cash deal.

The merger is anticipated to create a stronger security portfolio, introducing new products such as Identity Threat Detection and Response (ITDR) and next-generation SIEM capabilities.

Secureworks had previously cut approximately 15% of its workforce as part of a strategy to focus on higher-value Taegis solutions.

Dell Technologies, which owns about 79% of Secureworks, had explored acquisition offers after previous attempts to sell were unsuccessful.

Both companies are recognized for their significant contributions to cybersecurity research, including findings related to espionage linked to China and North Korea.

The acquisition will combine Secureworks' Taegis XDR platform with Sophos' managed detection and response (MDR) services, targeting a broader market.

Sophos CEO Joe Levy expressed confidence that this integration will strengthen market position and improve outcomes for businesses of all sizes.

However, there are concerns that the Federal Trade Commission may scrutinize Thoma Bravo's growing influence in the cybersecurity sector due to its multiple acquisitions.