Private equity firm Advent International will pay $1.9 billion to purchase enterprise device security provider, Forescout Technologies.
ForeScout provides real-time network visibility into users, devices, systems and applications. Its platform helps organizations better understand their security posture and automate responses to a wide variety of security issues. Upon completion of the transaction, Forescout will become a private company led by current chief executive and president Michael DeCesare and continue to be headquartered in San Jose, California.
“We are still in early innings of a large market opportunity as every organization needs visibility into what is connecting to their network and how to mitigate against high risk devices, including non-traditional IoT and OT devices,” said DeCesare. “This transaction represents an exciting new phase in the evolution of Forescout.”
“Forescout is an ideal partner for Advent — as it’s a mission-critical business positioned to capitalize on key tech megatrends,” said Bryan Taylor, head of Advent’s technology investment team and a Managing Partner in Palo Alto. “The company has differentiated itself from its core competitors with its proprietary, agentless technology, making it ideal for large, complex organizations in a rapidly evolving cyber risk landscape
In November 2018, Forescout acquired operational technology (OT) network security firm SecurityMatters for $113 million in cash to expand its industrial cybersecurity offerings.
The transaction is expected to close in the second calendar quarter of 2020, subject to customary closing conditions.
Advent is joined by private equity firm Crosspoint Capital Partners as a co-investor and advisor.
Under the terms of the agreement, Advent will acquire all outstanding shares of Forescout common stock for $33 in cash, a premium of 20 percent over Forescout’s closing share price on Feb. 5.
However, the deal may not be over yet as the pact includes a 30-day “go-shop” period that expires March 8, and allows Forescout to solicit alternative acquisition bids from interested parties.
Forescout had $336.8 million in revenue in 2019, an increase of 13 percent over 2018.