Forescout To Be Bought By Advent International For $1.9 Billion
.jpg)
Forescout has agreed to be purchased by a private equity firm for $1.9 billion less than two and a half years after the Internet of Things security firm went public.
The $33-per-share deal is expected to provide San Jose, Calif.-based Forescout with the flexibility needed to continue investing in the development and deployment of leading-edge cybersecurity products and tools that serve the evolving needs of enterprise customers. The purchase price represents a 17.9 percent premium over Forescout’s closing share price Wednesday of $27.98 per share.
“We are still in early innings of a large market opportunity as every organization needs visibility into what is connected to their network and how to mitigate against high-risk devices, including nontraditional IoT and OT devices,” Forescout CEO Michael DeCesare (pictured) said in a statement. “This transaction represents an exciting new phase in the evolution of Forescout.”
Forescout’s stock is up $5.52 (19.73 percent) to $33.50 in premarket trading Thursday. The agreement with Advent includes a 30-day “go shop” period expiring on March 8 during which time Forescout’s board can solicit alternative acquisition proposals by third parties. DeCesare will continue to lead Forescout, which will remain based in San Jose.
“Forescout is an ideal partner for Advent—as it’s a mission-critical business positioned to capitalize on key tech megatrends,” Advent Technology Investment Team head Bryan Taylor said in a statement. “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.”
Boston-based Advent teamed up in July with Permira Holdings and former Symantec CEO Greg Clark to draw up a competing bid to purchase publicly traded Symantec, Bloomberg reported in July. But Advent and Permira’s pursuit of Symantec was considered a long shot since it was unable to compete on price with Broadcom, which agreed in August to buy Symantec’s enterprise business for $10.7 billion.
Then in September, The Wall Street Journal reported that Advent and Permira hoped to join forces and purchase Symantec’s consumer business (now known as NortonLifeLock) for more than $16 billion. Clark is also part of the Forescout deal through his role as managing partner at private equity firm Crosspoint Capital, which is serving as a co-investor and adviser to Advent in the acquisition.
“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,” Clark said in a statement. “Forescout’s platform is already ahead of the curve, and we believe we can further advance the company’s market position.”
Activist investors Corvex Management and Jericho Capital Asset Management disclosed a 14.5 percent ownership stake in Forescout on Oct. 21, with Corvex Managing Partner Keith Meister saying at an investment conference that month that the company has a chance to double its sales over the next five years as its shifts to a subscription-based model.
Then in early November, Forescout cut its 2019 revenue forecast as sales fell below expectations in Europe, the Middle East and Africa (EMEA). One week later, Bloomberg reported that Forescout was working with a financial adviser to explore strategic options, including a possible sale.
“In making its determination [to sell], the [Forescout] board of directors considered the likely volatility associated with the business model transition to ratable revenue recognition, changes to our go-to-market initiatives, particularly in EMEA, and timing of significant eight-figure deals, while managing to quarterly street estimates as a publicly traded company,” Forescout Chair Theresia Gouw said in a statement.
Forescout raised $116 million in an October 2017 Nasdaq initial public offering that valued the company at $800 million. The company grew head count by more than 28 percent to 1,126 employees between February 2018 and February 2019, but has slowed its hiring considerably over the past year.
The company reported Thursday an 8 percent increase in fourth-quarter revenue to $91.3 million, which missed Seeking Alpha’s quarterly revenue estimate of $95.2 million. And the loss for the quarter worsened by 12 percent to $20 million, or 42 cents per share, falling well short of Seeking Alpha’s loss estimate of 31 cents per share.
For all of 2019, Forescout’s sales increased by 13 percent to $336.8 million while the loss worsened by 58 percent to $118.5 million, or $2.58 per share.
source crn
Industry: Cyber Security

Latest Jobs
-
- Identity Channel Partner Manager | London
- London
- N/A
-
Identity Channel Partner Manager | London Location: South East UK (commutable to London) We are working with a Cyber Security business who are looking for a Channel Partner Manager to drive and grow relationships across their identity ecosystem. Prior experience working within VARs, distributors, vendors or resellers in the identity space is essential. You must have experience working with technologies such as CyberArk, Sailpoint, Okta etc Responsibilities will include, but not be limited to: Build, maintain and develop strong relationships with channel partners. Work closely with partner sales teams to support growth drive sales opportunities. Identify and onboard new partners while strengthening existing partnerships. Act as the key point of contact for all channel-related activity. If you are an experienced channel professional, with experience in the Identity space and are ready for your next challenge, apply today.
-
- Service Architect- DACH regions
- Germany
- Upto €110,000 plus bonus and benefits
-
Lead Service Architect with the authority and experience to take control of complex, multi-million-euro outsourcing bids. This role is about leading the Service/ solutioning effort, bringing structure to chaos, and driving the entire bid team to deliver winning proposals. The company area a global managed services business working with enterprise and public sector clients, across Cloud, End-User Computing, Digital Workplace, Service Desk, and Network Infrastructure. What You’ll Do: Lead Service/ solution design from qualification to contract. Control bid teams — architects, pricing, delivery, and SMEs. Break down RFPs/RFIs into actionable, costed, client-ready solutions. Present internally and to clients at decision-maker level. Run solution workshops, own the architecture, and shape the financial model. You’ll Need: Experience working as a Service architect, Service Manager or Customer Success Manager R Gravitas to lead and drive teams through high-stakes bids. Deep knowledge of managed services delivery and commercial models. Strong technical grasp: Cloud, Security, EUC, Unified Comms, Service Desk, and more. Experience leading deals across onshore, offshore, and hybrid delivery models.
-
- Deal Architect- DACH region
- Germany
- Upto €110,000 plus bonus and benefits
-
Lead Deal Architect with the authority and experience to take control of complex, multi-million-euro outsourcing bids. This role is about leading the solutioning/ Service effort, bringing structure to chaos, and driving the entire bid team to deliver winning proposals. The company is a global managed services business providing solutions to enterprise and public sector clients, across Cloud, End-User Computing, Digital Workplace, Service Desk, and Network Infrastructure. What You’ll Do: Lead the deal from qualification to contract. Control bid teams — architects, pricing, delivery, and SMEs. Break down RFPs/RFIs into actionable, costed, client-ready solutions. Present internally and to clients at decision-maker level. Run solution workshops, own the architecture, and shape the financial model. Be responsible for the service Wrap and ensuring the Service meets clients requirements You’ll Need: A back ground with IT Services Experience in a similar type of role, for example: Deal, Service, or Solution Architect in ICT outsourcing. Gravitas to lead and drive teams through high-stakes bids. Deep knowledge of managed services delivery and commercial models. Strong technical knowledge: Cloud, Security, EUC, Unified Comms, Service Desk, and more. Experience leading deals across onshore, offshore, and hybrid delivery models.
-
- Pre Sales Lead- IT Services
- Germany
- Upto €100,000 plus benefits
-
As the Pre-Sales Lead (Sales Engineer/ Solution Architect) you will drive large-scale ICT managed services and outsourcing deals (from €0.5M to €20M+). You'll work directly with Business Development and clients to design high-impact solutions across Cloud (Azure, IaaS, SaaS, PaaS), EUC, Unified Comms, Security (SIEM, PAM), Networks, and Smart Workplaces. What You’ll Do: Lead the end-to-end pre-sales cycle — from RFI/RFP to contract. Design innovative, client-specific solutions with technical & commercial impact. Present at CxO level and steer proposal strategies & financial models. Collaborate closely with Portfolio, Service Desk, Field, and Digital Workplace teams. Support deal shaping with strong knowledge of ITIL, SIAM, Automation, and cost analysis. What You’ll Bring: Have strong experience in pre-sales or solution architecture. Experience with €M+ managed service deals. Deep technical expertise in modern ICT stack and enterprise IT services. Strong German (C1) and English communication skills. Certifications: ITIL v3/v4 required; SIAM, ISO20000 desirable.