 "Cyberattacks in India have tripled in the last three years.")
Buyout firm TPG will buy the government cybersecurity business of Francisco Partners-owned software company Forcepoint in a $2.45 billion deal, two sources familiar with the matter said on Monday.
The two companies did not disclose the terms of the deal that comes as private equity firms scoop up cybersecurity companies on hopes that the rise in digital presence of governments and business would fuel demand.
The acquisition would hand TPG control of Forcepoint Global Governments and Critical Infrastructure, which focuses on key infrastructure for U.S. government and federal agencies.
Francisco Partners, which bought Forcepoint from RTX in 2021, will retain a minority stake and continue as a controlling shareholder in Forcepoint Commercial business, the software company said.
Forcepoint said in April it was exploring a sale of its government security unit for more than $2 billion, as it shifted focus to growing its commercial business that caters to large corporations.
The company counts International Business Machines, CVS Health, Microsoft, Boeing and
Qualcomm among its customers.
Francisco Partners and TPG had previously partnered to buy Dell Technologies' cloud business, Boomi, for $4 billion in 2021.
TPG has previously invested in cybersecurity companies such as McAfee, Zscaler, Tanium, and Expanse, among others.
It will invest in Forcepoint G2CI through TPG Capital, the firm's U.S. and European late-stage private equity platform.
The deal is expected to close in the fourth quarter of 2023. Citi and Barclays were the financial advisors to Forcepoint and Francisco Partners, while Piper Sandler was the financial advisor to TPG.
