A decision by the US Justice Department not to challenge software-focused private investment firm Thoma Bravo’s acquisition of identity management specialist ForgeRock, has cleared the way for the $2.3bn deal to close this week, according to a report by Bloomberg.
The Justice Department’s antitrust lawyers initially opened a probe into the deal over concerns it would harm competition because the private equity firm already owns one of ForgeRock’s main competitors – Ping Identity Holding Corp – and also acquired a related company, SailPoint Technologies Holdings, last year.
News of the Justice Department’s decision, which came following high-level meetings with the two companies last month, saw ForgeRock’s stock climb by as much as 8.8% on Tuesday to reach its highest level so far this year at $23.19.
Under the terms of the deal, Thoma Bravo will pay $23.35 per share to acquire ForgeRock.
