Private equity firm TPG Capital recently made a significant acquisition, purchasing the government cybersecurity business of Forcepoint from Francisco Partners for a hefty price tag of $2.45 billion. This news, originally reported by The Wall Street Journal, was confirmed by Forcepoint on Monday. The deal comes just over two years after Francisco Partners acquired Forcepoint from Raytheon Technologies in January 2021.
However, it is essential to note that the acquisition by TPG Capital only includes Forcepoint’s Global Governments and Critical Infrastructure (G2CI) business. This portion of the company will now be classified as an independent entity. Francisco Partners, on the other hand, will maintain ownership of Forcepoint’s commercial business and retain a minority stake in G2CI.
The G2CI sector of Forcepoint has been actively involved in the U.S. government for more than two decades. This business unit provides security solutions to defense, intelligence, and critical infrastructure organizations. The acquisition by TPG Capital highlights the increasing importance of dynamic security solutions in today’s operating environment, where cyber threats are growing in sophistication and data volumes are escalating.
Tim Millikin, a partner at TPG Capital, expressed his enthusiasm about the acquisition, stating that Forcepoint’s platform is designed to cater to the unique complexities of government objectives and culture. He emphasized the importance of expanding the platform and further establishing Forcepoint as a leading provider of high assurance, zero trust security. Millikin’s remarks suggest that TPG Capital recognizes the invaluable role that Forcepoint’s G2CI business plays in addressing the security needs of the public sector.
Meanwhile, Forcepoint’s spokesperson highlighted the significance of the deal for the company’s commercial business. With the government cybersecurity business now under TPG Capital’s ownership, Forcepoint’s commercial arm can concentrate on enhancing its secure access service edge (SASE) platform, known as Forcepoint One. This cloud-based platform, launched in February of last year, provides a zero-trust solution aimed at ensuring data security for the growing hybrid workforce.
The recent surge in cyber attacks targeting the public sector has underscored the urgent need for robust cybersecurity measures. Ransomware attacks, in particular, have plagued government entities, leading to destructive data breaches. One notable example is the Clop ransomware gang’s exploitation of a zero-day vulnerability in Progress Software’s MoveIt Transfer product, resulting in several state government entities becoming victims of the attack.
Furthermore, software supply chain attacks have been an ongoing concern, with the SolarWinds hack in 2020 serving as a stark reminder of the vulnerabilities that exist in technology supply chains. This incident specifically impacted federal agencies through the exploitation of Orion software, developed by SolarWinds. In response to such threats, the White House’s National Cybersecurity Strategy, unveiled in March, aimed to strengthen global technology supply chains to safeguard federal agencies.
The acquisition of Forcepoint’s government cybersecurity business by TPG Capital is set to be finalized in the fourth quarter of 2023. As the deal progresses, it will be interesting to see how TPG Capital leverages its acquisition to enhance the security offerings for the public sector through Forcepoint’s G2CI business. This move comes at a critical time when governments worldwide are grappling with increasingly sophisticated cyber threats and striving to bolster their cybersecurity defenses.