After the sale of US-Israeli company Forescout Technologies (Nasdaq: FST) ell through and the company sued the buyer, and just a few days before the start of legal proceedings, the deal has come back to life, although at a lower price.
Forescout provides solutions for control and security of devices connected to an enterprise network. The company announced yesterday that private equity firm Advent would be making an offer for Forescout of $29 per share, implying a valuation of $1.4 billion.
The previous deal, reported in February this year, was at $33 per share, or a valuation of $1.9 billion.
Forescout's board of directors recommends shareholders to accept the offer which is conditional on acceptance by at least 50% of the shareholders. Te deal is expected to close in the third quarter, after which Forescout will become a privately held company.
Forescout's share price responded with a 15.4% jump yesterday to a price close to the offer price, which is 32% higher than the share price in the company's IPO in 2017 and the same as the price at which it made a secondary offering in early 2018. At its peak, in March 2018, the stock was traded at $46.
The main beneficiaries from the sale of the company on the current terms will be investment giant Blackrock, which in the company's latest filing held a 6.1% stake, Israeli venture capital fund Pitango and UK fund Amadeus.
Published by Globes, Israel business news - en.globes.co.il - on July 16, 2020
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