FSCT - Why Forescout Is Taking a Much Lower Buyout Offer
Forescout Technologies (NASDAQ: FSCT) is a cybersecurity software company focused on tracking devices in a network and keeping them connected. The company's software can be used to track and manage all sorts of devices, and it's used by many customers as a building block for their internet of things (IoT) networks.
In February 2020, private equity firm Advent International agreed to acquire Forescout for $33 per share, or $1.9 billion; however, Advent got cold feet once the COVID-19 pandemic disrupted the economy, and attempted to walk away from the deal.
When Forescout first announced its buyout in February, the deal's price of $33 per share represented a nice pop from where the stock was trading before the announcement. The private equity company had financing secured, and just needed Forescout's shareholders to approve the deal. The acquisition was expected to be completed by mid-2020.