What happened
Shares of network security specialist Forescout Technologies (FSCT +0.00%) surged as high as 20.1% on Thursday. As of 12:36 p.m. EST, the stock was up 19.5%.
The stock's gain follows the company's fourth-quarter results and news that it entered a definitive agreement to be acquired by private equity investment firms Advent International and Crosspoint Capital Partners in a cash deal valued at $1.9 billion.
Image source: Getty Images.
So what
As part of the deal, shareholders would receive $33 per share when the acquisition closes.
"Upon completion of the transaction, Forescout will become a private company with the flexibility to continue investing in the development and deployment of leading-edge cybersecurity products and solutions that serve the evolving needs of enterprise customers," Forescout said in a press release on Thursday. "CEO and President Michael DeCesare will continue to lead the company, and Forescout will continue to be headquartered in San Jose, California."
Separately, Forescout announced fourth-quarter revenue of $91.3 million, up 8% year over year. Subscription revenue notably jumped 14% to $37.6 million. The tech company's non-GAAP (adjusted) net loss per share during the period was $0.09.
Now what
The transaction is expected to close sometime during the second quarter of 2020. But the deal is subject to regulatory approval and customary closing conditions, including a majority vote in favor of the deal from Forescout shareholders.
