Following the sale of the computer security software developer's Global Governments and Critical Infrastructure business, Francisco Partners will retain a minority stake in the unit and continue to own and manage Forcepoint’s commercial cybersecurity business as a separate entity
Francisco Partners to sell Forcepoint Global Governments and Critical Infrastructure business to TPG. (Credit: Pete Linforth from Pixabay)
Software company Forcepoint has signed a definitive agreement with US-based private equity firm TPG to divest one of its business units in a deal reportedly valued at $2.45bn.
Under the deal, TPG will buy the computer security software developer’s government cybersecurity business known as Forcepoint Global Governments and Critical Infrastructure (G2CI) from Francisco Partners.
Following the closing of the transaction, Forcepoint’s commercial and G2CI businesses will be separated, and the latter will be established as an independent entity.
The Texas-based company’s business unit focuses on critical infrastructure for the US government and federal agencies.
Established in 1994, Forcepoint specialises in web security, data security, email security, mobile security, cloud security, network security, data loss prevention (DLP) software, insider threat protection, cross-domain solutions, cybersecurity, and critical infrastructure.
The company streamlines security for global businesses and governments.
Forcepoint’s cloud-native platform makes it simple to adopt zero trust and avoid the theft or loss of sensitive data and intellectual property.
Forcepoint G2CI president Sean Berg said: “It’s our mission to support the national security and intelligence communities by providing trusted, data-driven security solutions that enable them to collaborate and conduct mission-critical work securely and effectively.
“TPG has a long history of carving-out, building, and scaling world-class cybersecurity companies. We’re confident that this partnership, along with continued support from Francisco Partners, will provide us the resources and expertise to strengthen our position as a partner of choice for government agencies.”
In line with the acquisition, TPG will invest in Forcepoint G2CI through TPG Capital, the company’s US and European late-stage private equity platform.
Francisco Partners acquired Forcepoint from Raytheon Technologies in January 2021. The deal between the parties was initially announced in October 2020.
TPG partner Tim Millikin said: “Today’s operating environment – one in which data volumes are compounding, attack surfaces are broadening, and threats are growing in sophistication – demands dynamic security solutions.
“This is especially true for the public sector, and Forcepoint has designed its platform to address the unique complexities of government objectives and culture.”
Subject to regulatory review and customary conditions, the transaction is anticipated to be completed in Q4 2023.
In August 2022, Francisco Partners inked a definitive agreement with SAP America, a wholly owned subsidiary of SAP, to acquire SAP Litmos for an undisclosed sum.
SAP Litmos, which was founded in 2007, claims to develop and deliver the most user-friendly learning management system and eLearning solutions. The company develops eLearning solutions for major companies that are used by over 30 million people.