(RTTNews) - Forescout Technologies, Inc. (FSCT), a provider of network security products, said Thursday that it has agreed to be acquired by private equity group Advent International in an all-cash transaction valued at $1.9 billion.
Under the terms of the deal, Advent International will acquire all outstanding shares of Forescout common stock for $33.00 per share. Advent will be joined by Crosspoint Capital Partners, a private equity investment firm focused on the cybersecurity and privacy industries, as a co-investor and advisor.
The purchase price represents a nearly 30 percent premium over Forescout's closing share price of $25.45 on October 18, 2019, the last full trading day prior to the release of the 13-D filings by Corvex Management L.P. and Jericho Capital Asset Management L.P. on October 21, 2019.
Upon completion of the transaction, Forescout will become a private company with the flexibility to continue investing in the development of cybersecurity products and solutions for enterprise customers.
CEO and President Michael DeCesare will continue to lead the company, and Forescout will continue to be headquartered in San Jose, California.
The agreement includes a 30-day "go-shop" period expiring on March 8, 2020, which permits Forescout's board of directors and advisors to solicit alternative acquisition proposals from third parties.
Separately, Forescout Technologies reported that its fourth-quarter net loss was $20.0 million or $0.42 per share, compared to net loss of $17.9 million or $0.42 per share in the year-ago period.
Adjusted loss for the quarter was $0.09 per share, compared to adjusted net loss of $0.01 per share in the same period last year.
Revenue for the quarter grew 8 percent to $91.3 million from $84.7 million in the prior-year period.
Analysts polled by Thomson Reuters expected the company to report loss of $0.06 per share for the quarter on revenues of $95.25 million. Analysts' estimates typically exclude special items.
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