Francisco Partners has finalized the sale of a business segment of Forcepoint, a prominent software provider, to buyout firm TPG for an impressive sum of $2.45 billion. The entity being acquired by TPG is none other than Forcepoint Global Governments and Critical Infrastructure, a key player in providing critical infrastructure solutions for U.S. government and federal agencies.
This acquisition comes after Francisco Partners’ previous acquisition of Forcepoint from Raytheon Technologies in 2020, where the former retained a minority stake in the business. The move showcases a strategic decision to capitalize on the lucrative government security sector while streamlining its focus on the expansion of the commercial business.
Reports indicate that the U.S. government business segment of Forcepoint yields a substantial annual revenue of approximately $400 million. This figure underscores the significance of the acquisition for TPG, as it positions them to tap into a robust and stable market.
Despite the magnitude of the deal and its potential implications for the industry, both TPG and Francisco Partners have chosen to remain tight-lipped on the specifics of the transaction. When contacted for comments on the matter, both companies declined to offer any insights at this time. Similarly, Forcepoint, which is at the heart of the deal, has not responded to media queries either.
Forcepoint’s decision to divest its government security division aligns with its previously announced intention to shed the division for a sum exceeding $2 billion. The move is part of a strategic shift towards prioritizing the expansion and development of its commercial business ventures.