The Whopping Deal
Advent International and Crosspoint Capital, the US-based private equity firms have entered into a definitive agreement in which they will acquire Forescout Technologies, an Israel based information security company. The acquisition is estimated to value $1.9 billion. The two will acquire all outstanding shares of Forescout common stock for $33.00 per share in an all-cash transaction. “Forescout has established itself as a leader in device visibility and control with the most advanced platform in the market,” said Michael DeCesare, CEO, and President of Forescout, who will continue to lead the company even after the acquisition. He further added, “This transaction represents an exciting new phase in the evolution of Forescout.”
Applying the Collective Experience and Expertise in Cybersecurity
The forescout will become a private company as this transaction is expected to close later this year. 30 days period is included in the agreement in which Forescout can seek alternative acquisition proposals. “Forescout is an ideal partner for Advent as it is a mission-critical business positioned to capitalize on key tech megatrends. 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,” said Bryan Taylor, head of Advent’s technology investment team. “As enterprises continue to shift to the cloud and decentralized networks, today’s chief information security officers are looking for secure solutions to increase visibility and provide orchestration, making their network controls more seamless,” said Greg Clark, Managing Partner at Crosspoint Capital.
The upcoming acquisition is the second acquisition of an Israel founded firm by a US -based company. Earlier this year, a New York-based firm Insight Partners acquired an Israeli IoT security firm Armis. After the acquisition, Armis will continue to operate independently and will be fully managed by its two co-founders.