Forcepoint Completes Sale of Public Sector Unit, to Focus on SASE Platform

Forcepoint has completed the $2.45 billion acquisition of its public sector unit, known as G2CI, by TPG, a global alternative asset management firm.

The transaction separates Forcepoint’s G2CI and commercial businesses, and marks Forcepoint G2CI’s next chapter as an independent company with the “flexibility and resources to grow its platform as a comprehensive, next-generation cybersecurity provider for the defense, intelligence and critical national infrastructure industries,” the company said. TPG acquired the public sector business through TPG Capital, its large-scale U.S. and European private equity platform.

As part of the transition, Forcepoint G2CI president Sean Berg has been named CEO of the new company, effective immediately. As CEO, Berg will focus the company’s strategy on global growth and expansion of the business.

Additionally, Peter Leav has joined the new company’s board of directors as executive chairman. He most recently served as president and CEO of McAfee, a former TPG portfolio company.

Selling Public Sector Business Allows More Investment in SASE

Forcepoint’s Manny Rivelo

Manny Rivelo, Forcepoint‘s CEO, said the acquisition enables the Forcepoint commercial business to further focus investment and innovation in accelerating growth of the company’s data-first secure access service edge (SASE) platform, Forcepoint One, while delivering increased value to its customers.

“Forcepoint’s differentiated approach to SASE integrates industry-leading data loss prevention and converged cloud-delivered security and networking to provide crucial visibility and control over data no matter where it is stored, moved or used,” he said.

Forcepoint will double down on the vision for its data-first SASE platform, which delivers “best-in-breed” integrated capabilities that address customers’ most critical security needs — all managed from a single pane of glass, Rivelo said.

“We have been recognized as a leader and visionary by the world’s leading analyst firms for our transformative approach in bringing together world-renowned data loss prevention, advanced security capabilities and converged, high-performance web and cloud access to deliver data security where it matters, on any device with a seamless user experience,” he said.

Sale Provides Public Sector Business with More Flexibility, Resources

“Teams across all levels of government rely on Forcepoint G2CI to conduct mission-critical business safely and effectively,” said Tim Millikin, partner at TPG. “The transaction provides Forcepoint G2CI with additional flexibility and resources to build upon its trusted platform, serving as a partner of choice to agencies amid an ever-changing operating environment. We look forward to partnering with Sean, Peter and the G2CI team to invest behind the company’s capabilities and deepen relationships with global government and critical infrastructure customers.”

Francisco Partners, a global investment firm that specializes in partnering with technology businesses, will maintain a minority stake in the public sector company. The firm continues to own Forcepoint’s commercial business.

“Cyberattacks from malicious nation-states, bad actors and insiders remain an existential threat to global governments and private industry,” said Andrew Kowal, partner at Francisco Partners. “The closing of this transaction allows both Forcepoint commercial and G2CI to focus on simplifying security for their primary customers and bringing to market game-changing solutions that improve efficacy, ease of use, and TCO for security investments.”