According to persons familiar with the situation, the sources reported on Sunday that TPG will pay Francisco Partners $2.45 billion to acquire a business unit of the software supplier Forcepoint.
The Forcepoint Global Governments and Critical Infrastructure segment, which specializes in government cybersecurity, is being acquired by TPG.
Francisco, which acquired Forcepoint from Raytheon Technologies in October 2020, will continue to control and manage its commercial cybersecurity business as a distinct corporation while holding a minority share in the unit, according to WSJ.
TPG, Francisco Partners, and Forcepoint all denied requests for comments while failing to do so right away.
Based in Austin, Texas Data protection, firewall, and computer security software are all produced by Forcepoint. Currently, the company’s contract with the US government brings in roughly $400 million a year.
According to sources cited earlier, Forcepoint is considering selling its government security division for more than $2 billion as part of its goal to concentrate on expanding its commercial company.
TPG Inc., formerly Texas Pacific Group and TPG Capital, is a private equity company with headquarters in Fort Worth, Texas. The company specializes on growth capital and leveraged buyouts. Growth capital, venture capital, public equity, and debt investments are all managed by TPG.
American private equity firm Francisco Partners specializes on investing in technology and technology-enabled services companies. It was established in August 1999; its headquarters are in San Francisco, and it also has offices in London and New York.