Francisco Partners-Backed Forcepoint Reportedly Looking to Sell Its Government Cybersecurity Unit
Francisco Partners-backed Forcepoint, a cybersecurity company, is considering the sale of its government security unit for an estimated $2 billion, according to a Reuters report.
Austin, TX-based Forcepoint is said to be working with Citigroup on the sale, according to Reuters’ sources. Forcepoint is reportedly looking to offload the unit to concentrate on growing its commercial business.
The discussions are apparently at an early stage and no deal is imminent.
The company’s US government business, which secured a potential $89 million contract from the Department of Defense for security software in 2022, generates an annual revenue of approximately $400 million.
Forcepoint, previously known as Websense, was acquired by Francisco Partners in 2020 from Raytheon Technologies. The company became Raytheon’s wholly owned business after the defense contractor purchased private equity firm Vista Equity Partners‘ minority interest in the cybersecurity joint venture for $588 million during the fourth quarter of 2019.
Forcepoint’s customers also include IBM, CVS Health, Microsoft and Qualcomm.