Private equity firm Advent International does not plan to complete its acquisition of security firm Forescout, officials said in a statement today. When the transaction was first announced in early February, Advent said it would pay $33 a share for ForeScout, valuing the company at about $1.9 billion.
On May 15, Advent informed Forescout it would not proceed to finalize the acquisition on May 18, 2020, as scheduled. The companies are engaged in ongoing discussions regarding timing to close and terms of the deal, but "there can be no assurance that Forescout and Advent will be able to reach agreement on terms," officials stated. The two had received all necessary approvals to complete the acquisition. It seems the stall can be linked to economic uncertainty around the coronavirus pandemic, which has caused financial troubles for many businesses.
"This is an uncertain time for everyone, as businesses and communities across the world navigate the challenges created by the COVID-19 pandemic," said Michael DeCesare, CEO and president of Forescout in a statement. "We continue to believe that Advent is the right partner for Forescout and we remain committed to completing the transaction in the near-term."
Read the full release here.