Seeking Growth, Raytheon Reshuffles Forcepoint Cybersecurity Unit
Forcepoint, which is 80% owned by Raytheon, is combining its business securing critical infrastructure -- including power plants, water filtration systems, and healthcare and financial services networks -- with its government unit. Raytheon in 2015 invested $1.57 billion for a controlling stake in what was then known as Websense and combined that commercial cybersecurity company with its own in-house tech unit to offer military-grade cyber defense to civilian and government customers. Raytheon CEO Tom Kennedy on a Jan. 25 call with investors called 2017 "a rebuilding year" for Forcepoint, with the company revamping its sales force and adjusting its focus to target large enterprises instead of small to mid-sized businesses. Raytheon has also argued that it is unwise to judge Forcepoint solely on the unit's operating results, claiming that the company's expertise has opened up new opportunities for Raytheon that are not included in Forcepoint's results. Forcepoint can also potentially help Raytheon at home, where the Pentagon is making defense contractor security a priority.