Dell Technologies (DELL) - Get Report is reportedly exploring a sale its cybersecurity business, RSA Security, which it expects could fetch at least $1 billion including debt, Bloomberg reported just ahead of the release of the company's fiscal third-quarter earnings.
Citing people familiar with the discussions, Bloomberg said that Dell was considering selling the division, which helps companies detect and respond to security risks as well as reduce intellectual property theft, fraud and cybercrime.
Talk of a potential RSA sale comes ahead of Dell's fiscal third-quarter earnings, which will be released after the closing bell on Tuesday. Analysts polled by FactSet are expecting earnings per share of $1.59 on sales of $23 billion.
Dell acquired RSA from its 2016 takeover of EMC, which had purchased RSA for about $2.1 billion in 2006, according to Bloomberg. RSA says it has more than 30,000 customers who mostly use its tokenized approach to security.
Dell, one of the largest personal computer makers in the world, in August said it swung to a fiscal-second-quarter profit from a year-earlier loss on stronger sales of its IT-focused hardware and related services.
On the same day as its last earnings release, the Defense Department announced that it had awarded its $7.6 billion Defense Enterprise Office Solutions cloud contract to a group composed of Dell, General Dynamics's (GD) - Get Report CSRA unit and privately held Minburn Technology Group.
Shares of Dell were up 0.58% at $55.35 in morning trading.