Highlights:

  • After the acquisition, Francisco Partners will maintain a minority stake in Forcepoint G2CI and retain management of the firm’s commercial cybersecurity enterprise as a distinct entity.
  • In 2021, Francisco Partners purchased Forcepoint from Raytheon Technologies for USD 1.1 billion, making the sale of the government business a highly profitable venture for the private equity firm.

TPG Capital, a buyout firm, announced its plan to acquire Forcepoint LLC’s government business for USD 2.45 billion. This surpasses the previous acquisition value of the entire Forcepoint Company by Francisco Partners in 2021.

TPG Capital is set to acquire Forcepoint’s government and critical infrastructure unit, known as “G2CI.” This division primarily focuses on serving the U.S. government, federal agencies, and commercial customers engaged in direct transactions with the government. After the acquisition, Francisco Partners will maintain a minority stake in Forcepoint G2CI and retain management of the firm’s commercial cybersecurity enterprise as a distinct entity.

In 2021, Francisco Partners purchased Forcepoint from Raytheon Technologies for USD 1.1 billion, making the sale of the government business a highly profitable venture for the private equity firm.

TPG is a dynamic private equity firm with extensive experience in the cybersecurity sector. They have invested early in prominent companies like Zscaler Inc., which went public in 2018, and Tanium Inc., demonstrating their commitment to the industry. In 2016, TPG obtained a major stake in McAfee, the cybersecurity company owned by Intel Corp. Furthermore, in 2021, TPG acquired majority ownership in identity-management companies Thycotic Software Ltd. and Centrify, merging them to establish Delinea Inc.

The recent acquisition of Forcepoint’s government business marks one more collaboration between Francisco Partners and TPG, adding to their successful joint venture track record. During 2021, Dell Technologies Inc. completed the sale of its integration platform-as-a-service company Boomi to two private investment firms, Francisco Partners and TPG, for a notable amount of USD 4 billion.

TPG Partner Tim Millikin stated, “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.”

Completion of the acquisition is contingent upon regulatory review and fulfillment of standard closing conditions, with an anticipated closing date scheduled for the fourth quarter of 2023.