Raytheon Takes Control of Forcepoint Cybersecurity Business

By Doug Cameron

Raytheon Co. said Thursday it had bought out its partner in the Forcepoint cybersecurity business, paving the way for its potential exit from the underperforming business.

The defense company said it paid $588 million to Vista Equity Partners LLC for its minority stake in Forcepoint, four years after creating a business aimed at selling military-style cyber products to commercial clients such as banks and retailers.

Defense companies have struggled in the commercial cyber market, and Raytheon is reviewing its role ahead of its planned merger with United Technologies Corp.

Raytheon paid almost $1.7 billion in 2015 for control of the assets that became Forcepoint. The unit ended 2019 with sales of $658 million and was barely profitable, well short of its initial goals for the sector.

Forcepoint's anemic growth contrasted with Raytheon's core defense business as a surge in fourth-quarter bookings lifted its backlog close to $50 billion.

Sales of its missiles and munitions and Patriot missile-defense systems boosted bookings by $12.1 billion in the quarter and to $36.3 billion for the year.

Profit in the fourth quarter rose to $881 million from $827 million a year earlier. Per-share profits climbed to $3.17 from $2.83.

Raytheon expects to close the planned merger with United Technologies early in the second quarter of 2020.

(END) Dow Jones Newswires

January 30, 2020 07:17 ET (12:17 GMT)

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