July 10, 2023: In an important business deal, private equity firm TPG is set to acquire a crucial division of software provider Forcepoint from Francisco Partners. According to the Wall Street Journal, the transaction amounts to $2.45 billion and involves Forcepoint’s government cybersecurity business, Forcepoint Global Governments, and Critical Infrastructure.
This business unit specializes in protecting critical infrastructure for the U.S. government and federal agencies, which is vital in safeguarding sensitive information. TPG’s acquisition will allow them to take over the operations and further develop this essential cybersecurity arm.
Francisco Partners, which acquired Forcepoint from Raytheon Technologies in October 2020, will retain a minority stake in the unit. They plan to continue managing their commercial cybersecurity business separately, indicating their commitment to the sector.
TPG and Francisco Partners have chosen not to comment on the deal, while Forcepoint is yet to respond to requests for comment.
Headquartered in Austin, Texas, Forcepoint is a renowned developer of computer security software, data protection solutions, and firewall technologies. Their government-focused division, responsible for catering to the U.S. government, generates an impressive $400 million annual revenue.
This strategic move by Forcepoint aligns with its objective to prioritize the growth of its commercial business. Earlier reports from Reuters in April suggested that the company was exploring the sale of its government security unit for over $2 billion as part of its strategy to focus on expanding its commercial operations.
In conclusion, TPG’s acquisition of Forcepoint’s government cybersecurity business marks a significant development in the industry, allowing for the continued protection of critical infrastructure for the U.S. government while enabling Forcepoint to concentrate on its commercial business growth.