Private equity group Advent International doesn’t plan to conclude the acquisition of cybersecurity company ForeScout Technologies by the May 18 deadline, reported Bloomberg.
“This is an uncertain time for everyone, as businesses and communities across the world navigate the challenges created by the Covid-19 pandemic,” ForeScout Chief Executive Officer Michael DeCesare said in a statement on Monday. The two parties have received all necessary approvals to complete the transaction, ForeScout said, but acknowledged that “there can be no assurance” that the two sides will “be able to reach agreement on terms.”
In February, Advent announced it would pay US$33 a share for San Jose, California-based ForeScout, valuing the company at about US$1.9 billion. ForeScout’s shares fell 20% to US$23.58 at 10:16 a.m. in New York.
The COVID-19 pandemic has caused a number of deals to collapse. During one seven-day period in early May, more than US$10 billion of mergers, acquisitions, and investments were terminated according to data compiled by Bloomberg, with more under threat as acquirers try to back out of agreements or renegotiate terms.
Full Content: Bloomberg
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