Shares of Forescout Technologies (NASDAQ:FSCT) popped on Wednesday morning, after it announced it amended its merger agreement with Advent International. Additionally, the two companies reached a settlement in court, paving the way for the merger to actually go through this time.
As of 11:15 a.m. EDT, Forescout Technologies stock was up 15%, and that's about where it will stay from here on out.
In April, Forescout Technologies shareholders approved a merger agreement with Advent International to take the company private at $33 per share. However, days before the deal went through, Advent International tried to back out. The stock fell sharply as a result.
I warned readers at the time that any future deal would likely be for a lower price. Indeed, that's the case. Forescout Technologies shareholders will receive $29 per share. That's a big premium to where shares have traded recently, but 12% below the original purchase price.
It appears neither side is getting exactly what they want. Advent International wanted out of the deal, but Forescout Technologies took them to court for terminating the original agreement. While Forescout likely had a point, a legal battle isn't ideal for anyone. That's probably why it was willing to agree to a lower price than it originally secured.
Don't expect the deal to fall through this time; it's expected to close in less than a week. If you're looking to grow your capital, there's no reason to continue holding Forescout Technologies stock. It's trading less than 1% below the agreed price, providing no real incentive for shareholders. It's time to move on and increase your capital through one of the many growth stock options available.