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Israel-founded cybersecurity firm ForeScout to be acquired for $1.9 billion

Company, headquartered in California but with staff in Tel Aviv, set to be bought up by US private equity firm Advent International

Luke Tress is a video journalist and tech reporter for the Times of Israel

ForeScout CEO Michael DeCesare during an interview with CNBC. (YouTube screenshot)
ForeScout CEO Michael DeCesare during an interview with CNBC. (YouTube screenshot)

California-based, Israel-founded ForeScout Technologies, Inc., a cybersecurity company, said Thursday that it had been acquired for $1.9 billion by US private equity firm Advent International.

Advent, along with co-investor Crosspoint Capital, is to acquire all outstanding ForeScout shares for $33 per share in an all-cash acquisition, the company said in a statement. ForeScout trades on the New York Nasdaq stock exchange.

Following the transaction, ForeScout will revert to being a private company. CEO and president Michael DeCesare will continue to head the firm, the company said.

The move was unanimously approved by ForeScout’s board of directors. The acquisition is not yet finalized but is expected to be completed by the second quarter of 2020.

ForeScout went public in 2017 when it was valued at a little over $800 million, raising about $116 million with its IPO with shares selling at $22.

Separately on Thursday, ForeScout reported its fourth quarter and 2019 earnings, falling short of its estimate by a significant 4.16%.

Advent was founded in 1984 and has invested in over 350 private equity transactions in 41 countries, and had some $56.6 billion in assets as of September 2019, ForeScout’s statement said.

With R&D in Tel Aviv and other countries, San Jose-based ForeScout has become a world leader in network access control — preventing any internet-connected device, such as computers or phones, from joining a network unless it has the right credentials. It also offers enterprises and government organizations the ability to view devices when they connect to the network. The firm serves customers of all sizes across a variety of industries, the prospectus said.

The company was founded in June 2000 in Israel and counts some 3,400 customers in 85 countries.

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