Raytheon says it's engaged in negotiations with Vista over Forcepoint

By Marjorie Censer / October 24, 2019 at 11:25 AM

Raytheon executives said today the company is negotiating with Vista Equity Partners about the value of Forcepoint, the cybersecurity business the two created in 2015.

Forcepoint was formed through a joint venture with Vista.

In a call with analysts this morning, Raytheon Chief Financial Officer Toby O'Brien said Vista is exercising an option in their agreement that requires Raytheon to purchase Vista's share of Forcepoint. He said the two parties are negotiating over the value of that share.

Asked whether the new development suggests Raytheon will sell Forcepoint before merging with United Technologies, Tom Kennedy, Raytheon's chief executive, said during the same call that it does not change the path for the organization.

"Soon, we'll own 100% of Forcepoint, and our plans have not changed," Kennedy said, noting that the company is focused on monetizing the unit. "It all remains in play in terms of monetizing the asset."

Meanwhile, Raytheon said sales in its most recent quarter reached $7.4 billion, up 9% from the same three-month period a year earlier. The contractor's quarterly profit hit $860 million, up 34% from the prior year.

Raytheon's sales were buoyed by its integrated defense systems unit, which recorded an 18% increase in quarterly revenue, and its space and airborne systems business, which announced a 14% boost.

Forcepoint reported quarterly sales of $167 million, down 3% from the prior year. Its quarterly profit totaled $14 million, down 22% from a year earlier.