TPG (NASDAQ:TPG) is set to acquire Forcepoint’s government cybersecurity business from a private equity firm, Francisco Partners, for about $2.45 billion. According to a Wall Street Journal report, TPG is expected to announce the deal soon.
The specific unit, known as Forcepoint Global Governments and Critical Infrastructure, primarily focuses on providing critical infrastructure for the U.S. government and federal agencies.
As part of the agreement, Francisco is expected to retain a minority stake in the unit. Also, the firm will continue to oversee the management of the business as a separate entity.
It is worth highlighting that the purchase price reflects a more than double increase in the unit’s valuation compared to the price Francisco Partners paid for Forcepoint’s unit in early 2021.
This latest acquisition by TPG aligns with the company’s track record of supporting cybersecurity software companies. In the past, TPG acquired a majority stake in Intel’s (INTC) computer security software unit, McAfee, in 2017 and made majority investments in identity-management firms Thycotic and Centrify in 2021.
Is TPG a Good Investment?
Of the eight top Wall Street analysts covering TPG stock, two rated it a Buy, while six assigned a Hold rating in the past three months. Overall, TPG stock has a Hold consensus rating. The average price target stands at $31.07, implying a 6% upside potential.
It is noteworthy that these top analysts have an impressive history of helping investors generate massive returns from their recommendations. Moreover, each analyst has a remarkable success rate.
