Thoma Bravo to take software firm ForgeRock private in $2.3 bln deal

Business

ForgeRock (FORG.N) said on Tuesday it will be acquired by buyout firm Thoma Bravo in an all-cash deal valued at about $2.3 billion, just over a year after the digital identity management company went public.

The move comes at a time when private equity buyers have ramped up their take-private activities as valuations of public tech companies dropped due to a broader equities selloff, triggered by high inflation and a tightening monetary policy.

ForgeRock shareholders will receive $23.25 for each share held, which represents a premium of about 53.4% to the stock’s last closing price.

Shares of ForgeRock jumped 50% to $22.76 before the bell. ForgeRock has been trading well below its initial public offering price of $25 per share, and has fallen over 43% so far this year.

Thoma Bravo, an avid software sector investor, acquired cybersecurity firm SailPoint, agreed to buy Ping Identity Holding (PING.N) and has expressed interest in British firm Darktrace Plc (DARK.L) and Australia’s Nearmap (NEA.AX) so far this year.

San Francisco-based ForgeRock provides identity and access management solutions for consumers, workforce and internet of things devices.

Distributed workforce and increased cyberattacks on businesses during the pandemic have pushed up demand for digital security solutions, helping drive growth for companies like ForgeRock that provides tools and software against such threats.

Prior to its public listing in 2021, ForgeRock had raised over $230 million in growth capital from investors, including Accel, KKR & Co (KKR.N) and Riverwood Capital.

The deal is expected to close in the first half of 2023.