TPG buys business unit of Forcepoint for $2.45 billion

Private equity firm TPG has reached an agreement to acquire a specific business of Forcepoint, a software provider, from investment fund Francisco Partners. This transaction, involving an investment of $2.45 billion, was first reported by the Wall Street Journal, according to sources familiar with the transaction.

Focus on government cybersecurity industry

TPG's move involves the acquisition of Forcepoint's unique government cybersecurity business, known as Forcepoint Global Governments and Critical Infrastructure. This unit focuses on providing solutions of the highest security and relevance to US federal and state government agencies.

The details of the agreement

Francisco Partners, which previously bought Forcepoint from Raytheon Technologies in October 2020, will retain a minority stake in the unit, the Wall Street Journal reported. He will also manage the commercial cybersecurity business as a separate entity. Neither of the stakeholders, TPG and Francisco Partners, chose to comment on the matter, and Forcepoint did not immediately respond to inquiries from reporters.

Focus on Forcepoint business

Forcepoint, based in Austin, Texas, specializes in the development of software solutions for information security, data protection and building firewall systems. His business, aimed at the United States government, generates annual revenues of approximately 400 million dollars. According to leaks reported by Reuters in April, Forcepoint is exploring the option to sell its government security unit for more than $2 billion as part of a strategy to focus on growing its commercial business.