Thoma Bravo to Acquire Identity Management Provider ForgeRock for $2.3 Billion

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ForgeRock Inc. today announcement that it will be acquired by private equity firm Thoma Bravo in an all-cash, $2.3 billion deal.

The deal values ​​ForgeRock at $23.25 per share, 53% above the company’s Monday closing price. Thoma Bravo expects to complete the acquisition in the first half of 2023.

San Francisco-based ForgeRock provides identity management software that organizations use to regulate how users access their technology infrastructure. The company’s software is used by more than 1,300 customers, including large enterprises and government agencies.

Businesses can use ForgeRock’s software to process customer application connection requests. ForgeRock promises to make it easier to implement features like multi-factor authentication and passwordless login support. The company’s software also simplifies other tasks, such as the process of creating a web portal through which customers can reset their passwords.

In addition to handling customer connection requests, an organization can also use ForgeRock’s technology to manage how employees access internal applications. ForgeRock offers tools that automate tasks such as provisioning access to applications for new employees. Additionally, the company’s software allows administrators to find and delete unused employee accounts.

Its third major axis is to help companies manage their connected devices. Since connected devices are often tied to an organization’s corporate network, they can potentially pose cybersecurity risks. ForgeRock offers tools that allow enterprises to limit which device can access which part of the network and how, as well as automate several related cybersecurity tasks.

ForgeRock revenue increased 8% year-over-year to $47.7 million, last quarter. The company offers its software in a managed cloud version which has become a key part of its growth strategy. ForgeRock’s software-as-a-service, support and subscription-based maintenance segment revenue grew 46% year-over-year last quarter.

ForgeRock began trading on the New York Stock Exchange late last year after breeding $275 million in an initial public offering. Previously, the company received more than $200 million in funding from Accel and other investors.

“We are confident that Thoma Bravo’s resources and knowledge will help us continue to drive innovation in our platform and deliver even more value to our customers,” said Fran Rosch, CEO of ForgeRock.

ForgeRock is the third publicly traded identity management provider that Thoma Bravo has acquired since the start of the year.

In April, the private equity firm announcement plans to buy SailPoint Technologies Holdings Inc. for $6.9 billion. Thoma Bravo acquired the company once before, in 2014, and took it public on the NYSE three years later.

More recently, Thoma Bravo in August ink a deal to acquire SailPoint rival Ping Identity Holding Corp. for $2.8 billion. Ping Identity’s customer base includes more than half of the Fortune 100 companies, as well as hundreds of other large organizations. In addition to connection request processing tools, the company offers software to protect application programming interfaces against cyberattacks.

ForgeRock, SailPoint and Ping Identity together generated more than $250 million in revenue during the second quarter ended June 30. All three companies’ annualized recurring revenue, a metric related to software-as-a-service sales, rose more than 20% in the quarter.

Image: Forge Rock

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