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Pile of Lawsuits Over Busted-Deals Grows With Forescout Suit Against Advent

  • Company scorns buyer’s claim that virus justifies ending pact
  • Fight for $1.9 billion deal is among 9 such cases in Delaware
Updated on

Private equity group Advent International Corp. can’t rely on fallout from the pandemic to cancel a $1.9 billion acquisition of Forescout Technologies Inc., the cybersecurity company said in a lawsuit, adding to the pile of broken deals in Delaware Chancery Court.

Forescout argues the purchase agreement specifically bars Advent from citing the coronavirus as creating a “material adverse effect” that excuses the investment fund from finalizing the deal. Advent executives “expressly agreed to bear the risk of adverse impacts on the company from a pandemic,” Forescout’s lawyers said in the complaint, filed Tuesday.

The San Jose, California-based security company said in the suit it was proceeding “diligently” with the transaction and that it expected to have a “strong” second quarter. “We have satisfied all conditions to closing under our merger agreement,” Theresia Gouw, chair of Forescout’s board of directors, said in a statement Wednesday.