IoT security co ForeScout raising $116m in Nasdaq IPO

ForeScout Photo: Prospectus
ForeScout Photo: Prospectus

Founded in Israel, ForeScout has developed the network security, tools and management to cope with the vast number of devices connected by IoT.

Internet-of-Things (IoT) cybersecurity company ForeScout Technologies is raising $116 million in its Nasdaq Initial Public Offering (IPO) at a company value of $816 million. The company yesterday priced 5,280,000 of its common stock shares at $22.00 per share and expects the offering to close on October 31. Forescout is trading on Nasdaq with the FCST ticker.

ForeScout has developed the network security, tools and management to cope with the vast number of devices connected by IoT. The company was founded in Israel in 2000 by chairman Hezy Yeshurun, together with Doron Shikmoni, CTO Oded Comay, chief architect Dror Comay, and Noga Alon. ForeScout moved its headquarters to California but maintains its development center in Tel Aviv.

Yeshurun owns 1.8% of ForeScout's shares capital while Israeli Pitango Venture Capital has a 14% stake. No other Israeli funds are parties at interest in the company. ForeScout's shareholders include UK firm Amadeus Capital with a 19.6% stake, US fund Accel (15.2%), Meritech (13.4%), and Wellington Management (7.7%). ForeScout president and CEO Michael DeCesare holds 3.3% of the company's share capital. ForeScout has raised $152 million to date in seven financing rounds

ForeScout has granted the underwriters a 30-day option to purchase up to 792,000 additional shares of common stock at the initial public offering price less underwriting discounts and commissions.

Morgan Stanley & Co. LLC, J.P. Morgan Securities LLC, and Citigroup Global Markets Inc. are acting as lead book-running managers for the offering. BofA Merrill Lynch and UBS Securities LLC are also acting as book-running managers for the offering. KeyBanc Capital Markets Inc. is acting as a co-manager.

Published by Globes [online], Israel business news - www.globes-online.com - on October 27, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

ForeScout Photo: Prospectus
ForeScout Photo: Prospectus
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