Under private equity ownership, security company will focus on risk and identity management
RSA, the company that brought the world the encryption algorithms that secure data, is once again an officially independent company following its separation from Dell Technologies.
The Lowdown: Yesterday (Sept. 1) was the official first day of RSA independence from Dell. The pure-play security company emerged from the transition away from Dell with a focus on building upon opportunities in infrastructure risk management through its RSA Archer Suite, identity management through RSA SecurID and NetWitness, security advocacy through its famed RSA Conference, and omnichannel fraud prevention through its RSA Fraud and Risk Intelligence solutions.
The Details: Backing RSA is a consortium of private equity firms led by Symphony Technology Group, Ontario Teachers’ Pension Plan Board, and AlpInvest Partners. The company is reorganizing leadership under Rohit Ghai, the new CEO who will oversee the company’s three business units. Bill Dias is joining RSA as the CEO of RSA Archer, and will focus on building the integrated risk management business. With the backing of the private equity firms, RSA says it will focus on growing its business around fraud prevention, cloud security, and risk mitigation.
Background: RSA’s ownership has been a long journey. Once the only name in encryption software and solutions, RSA literally wrote the book on cryptography. In 2006, EMC bought RSA for $2.1 billion. When Dell merged with EMC in 2016, RSA became one of several specialty portfolio companies under the conglomerate’s umbrella. Over the past four years, Dell sold several of the EMC assets to raise funds and consolidate its focus on core technologies. Dell using the acquisition of VMware in a reverse IPO and return to Wall Street triggered the RSA sale. RSA, initially thought to fetch $3 billion on the open market, sold in February 2020 for $2.1 billion.
The Buzz: “I am excited to partner with our new investors to script the next chapter in the iconic story of RSA. As an independent company with a clear mandate, RSA will yet again operate with a start-up mindset and remains committed to our own digital transformation as well as helping customers manage risk across their digital journeys,” said Ghai, CEO of RSA.
“RSA Archer pioneered the GRC market. Due to the depth and breadth of its offerings, RSA Archer is the de facto leader today in the integrated risk management market,” said Bill Diaz, CEO of RSA Archer. “I am excited to join the team and help accelerate growth by delivering on our innovation agenda to create value for our customers.”