Vista Equity Partners has agreed to sell Websense, a provider of cyberattack and data theft protection, to Raytheon (NYSE: RTN) for $1.9 billion. As part of the deal, Websense will be combined with Raytheon Cyber Products (RCP), a unit of Raytheon's Intelligence, Information and Services segment. Raytheon will provide a net cash contribution of about $1.57 billion for an 80.3% interest in the joint venture, while Vista will invest roughly $335 million for a 19.7% stake. In addition, Raytheon will contribute the assets of RCP and related intellectual property, which are valued at $400 million, giving the venture an enterprise value of $2.3 billion. The transaction is expected to close in 2Q.
Vista acquired Websense in a take-private buyout in 2013 for about $1 billion, generating a holding period return of 90%. The deal came from Vista's $3.5 billion Fund IV, which closed in May 2012 and had generated an IRR of 11.6% as of December 31.