By Milana Vinn
(Reuters) – RSA Security LLC, the former cyber security division of Dell Technologies Inc, is exploring a sale of its risk and compliance software unit Archer for more than $2 billion, according to people familiar with the matter.
RSA is working with investment banks Morgan Stanley and Goldman Sachs Group Inc on an auction for Archer, which has attracted interest from other companies and buyout firms, the sources said.
Archer generated $220 million in revenue last year and is growing profitably, added the sources, who requested anonymity because the matter is confidential.
Spokespeople for Morgan Stanley and Goldman Sachs declined to comment, while RSA did not respond to a request for comment.
The potential sale represents the latest in a string of deals involving RSA. Private equity firm Symphony Technology Group (STG), Ontario Teachers’ Pension Plan, and Carlyle Group Inc’s investment arm AlpInvest Partners acquired the company from Dell for $2.075 billion in 2020.
Clearlake Capital, another private equity firm, invested in RSA the following year.
In 2021, RSA cut a deal with Reed Taussig, the head of its fraud prevention software business Outseer, to spin it off as an independent company. Last year, RSA sold a majority stake in its events business, RSA Conference, to private equity firm Crosspoint Capital Partners for an undisclosed amount.
Archer, headquartered in Bedford, Massachusetts, is a governance, risk and compliance software platform with over 15,000 users globally. RSA’s other business divisions include identity and access management platform SecureID and threat detection and response software platform NetWitness.
Archer is not the only risk management software vendor up for sale in the United States. Reuters reported last month that private equity firm BC Partners is exploring the sale of a stake in Navex Global Inc that could value the company at more than $3 billion.
(Reporting by Milana Vinn in New York; Editing by Matthew Lewis)