(Reuters) – In a major deal, private equity firm TPG is set to acquire a business unit of software provider Forcepoint for a staggering $2.45 billion, according to sources familiar with the matter. This acquisition will see TPG take control of Forcepoint’s government cybersecurity business, known as Forcepoint Global Governments and Critical Infrastructure, which focuses on critical infrastructure for U.S. government and federal agencies.
The deal will involve Francisco Partners, which bought Forcepoint from Raytheon Technologies in October 2020, retaining a minority stake in the unit. The Wall Street Journal reports that Francisco Partners will continue to own and manage its commercial cybersecurity business as a separate entity.
Both TPG and Francisco Partners declined to comment, while Forcepoint has not yet responded to a request for comment on the matter. Forcepoint, headquartered in Austin, Texas, specializes in computer security software, data protection, and firewall solutions. Its business serving the U.S. government currently generates an impressive $400 million in annual revenue.
Back in April, sources revealed that Forcepoint was exploring the sale of its governments security unit for over $2 billion as part of its strategy to focus on growing its commercial business. With this latest development, it seems that Forcepoint is successfully executing its business plan.
Reporting for this article was done by Akanksha Khushi in Bengaluru. The article was edited by Jacqueline Wong and Diane Craft.
Credit: The Star : Tech Feed
