Stock Alert: Forescout Tanks 17% As Impending Merger Deal With Advent In Doubt

(RTTNews) - Shares of Forescout Technologies Inc. (FSCT) are sinking nearly 17% on Monday morning after the cybersecurity company announced "there can be no assurance" regarding its merger deal with Advent.

FSCT is currently trading at $24.65, down $4.87 or 16.50%, on the Nasdaq.

Last Friday, Advent informed Forescout that it would not be proceeding to consummate the acquisition of Forescout on May 18, 2020, as scheduled.

In February, Forescout had agreed to be acquired by private equity group Advent International in an all-cash transaction valued at $1.9 billion.

However, in the latest update, Forescout said that they are engaged in ongoing discussions regarding timing to close and the terms of the transaction, but "there can be no assurance that Forescout and Advent will be able to reach agreement on terms."

"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.

Forescout and Advent have received all necessary approvals to complete transaction.