July 9 (Reuters) – Buyout house TPG is buying a business unit of software provider Forcepoint for $2.45 billion from Francisco Partners, the Wall Street Journal reported on Sunday citing people familiar with the matter.
TPG is acquiring Forcepoint’s government cybersecurity business, known as Forcepoint Global Governments and Critical Infrastructure, according to the report. The unit focuses on critical infrastructure for U.S. government and federal agencies.
Francisco which bought Forcepoint from Raytheon Technologies (RTX.N) in October 2020 will retain a minority stake in the unit, WSJ said, adding that it will continue to own and manage its commercial cybersecurity business as a separate entity.
TPG and Francisco Partners declined to comment while Forcepoint did not immediately respond to a request for comment.
Austin, Texas-based Forcepoint develops and creates computer security software, data protection, and firewall solutions. Its business that caters to the U.S. government currently generates about $400 million of annual revenue.
Forcepoint is exploring sale of its governments security unit for more than $2 billion as part of its strategy to focus on growing its commercial business, sources told Reuters in April.
Reporting by Akanksha Khushi in Bengaluru; Editing by Jacqueline Wong and Diane Craft
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