TPG Agrees To Acquire Forcepoint's Business Unit, Terms Undisclosed - TPG (NASDAQ:TPG)

TPG Inc (NASDAQ:TPG) inked a deal with Forcepoint to buy its Global Governments and Critical Infrastructure (Forcepoint G2CI) business from Francisco Partners for an undisclosed amount.

The unit focuses on government and critical infrastructure customers, mainly U.S. government and federal agencies and commercial customers that sell directly to the government.

Post-buyout, G2CI will be established as an independent entity, backed by TPG, with advanced resources to drive the delivery of high-assurance security solutions.

Also, Francisco Partners will maintain a minority interest in the unit and hold a controlling stake in Forcepoint's commercial business.

The transaction is expected to close in Q4 2023 upon fulfillment of customary closing conditions.

Price Action: TPG shares are trading lower by 2.76% at $28.50 premarket in the last check Monday.

Editor's Note: The story has been updated to include the information from the company's press release.

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TPG Inc (NASDAQ:TPG) inked a deal with Forcepoint to buy its Global Governments and Critical Infrastructure (Forcepoint G2CI) business from Francisco Partners for an undisclosed amount.

The unit focuses on government and critical infrastructure customers, mainly U.S. government and federal agencies and commercial customers that sell directly to the government.

Post-buyout, G2CI will be established as an independent entity, backed by TPG, with advanced resources to drive the delivery of high-assurance security solutions.

Also, Francisco Partners will maintain a minority interest in the unit and hold a controlling stake in Forcepoint's commercial business.

As per WSJ, the deal may be priced at $2.45 billion, double the price that the private-equity firm Francisco Partners paid for the Forcepoint buyout in 2021.

The transaction is expected to close in Q4 2023 upon fulfillment of customary closing conditions.

"Today's operating environment – one in which data volumes are compounding, attack surfaces are broadening, and threats are growing in sophistication – demands dynamic security solutions. This is especially true for the public sector, and Forcepoint has designed its platform to address the unique complexities of government objectives and culture. We're excited to partner with Sean and the G2CI team to expand the platform and further its position as a leader in high assurance, zero trust security," stated Tim Millikin, Partner at TPG.

TPG has recently been on a buying spree. In April, TPG, along with AmerisourceBergen Corporation (NYSE: ABC), announced the acquisition of cancer services firm OneOncology from global growth equity company General Atlantic for $2.1 billion.

Price Action: TPG shares are trading lower by 2.76% at $28.50 premarket in the last check Monday.

Editor's Note: The story has been updated to include the information from the company's press release.

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