BY Richard Summerfield
Global asset management firm TPG has agreed to acquire Forcepoint’s global governments and critical infrastructure (G2CI) cyber security business in a deal worth $2.45bn.
The deal is subject to regulatory review and customary closing conditions and is expected to close in the fourth quarter of 2023.
Under the terms of the deal, Forcepoint’s commercial and G2CI businesses will be separated and will establish the G2CI business as an independent entity. The unit focuses on critical infrastructure for US government and federal agencies.
TPG will invest in Forcepoint G2CI through TPG Capital, the firm’s US and European late-stage private equity platform.
“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,” said Sean Berg, president, global governments and critical infrastructure at Forcepoint. “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.”
“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,” said Tim Millikin, a partner at TPG. “This is especially true for the public sector, and Forcepoint has designed its platform to address the unique complexities of government objectives and culture. We’re excited to partner with Sean and the G2CI team to expand the platform and further its position as a leader in high assurance, zero trust security.”
“We are proud to have built an industry-leading portfolio of security products that protect government and enterprise customers’ infrastructure, people, and data,” said Manny Rivelo, chief executive at Forcepoint. “This transaction represents an exciting opportunity for the Forcepoint G2CI business to continue its trajectory of growth, delivering high assurance security to government and critical infrastructure customers worldwide. Similarly, it enables the Forcepoint Commercial business to further focus investment and innovation in accelerating growth of the company’s Data-first SASE platform, Forcepoint ONE, while delivering increased value to our customers.”
“Sean and the Forcepoint G2I team have been excellent partners and built a thriving business that will benefit from operating as its own standalone business,” said Brian Decker, a partner at Francisco Partners. “We are excited to remain investors in the business and partner with the management team and TPG to help it continue to grow and succeed”.
Francisco Partners, a leading global investment firm that specialises in partnering with technology businesses, acquired Forcepoint in January 2021 from Raytheon Technologies. Francisco will retain a minority stake in the unit going forward.
News: TPG to buy Forcepoint unit from Francisco Partners for $2.45 billion, Wall Street Journal reports