FORG - ForgeRock drops amid new report DOJ may sue to block Thoma Bravo deal

2023-07-11 15:32:31 ET

ForgeRock ( NYSE: FORG ) fell 1.5% amid a new report that the Department of Justice may sue to block the identity management company's sale to private equity firm Thoma Bravo.

The DOJ appears to be leaning toward filing a lawsuit to challenge the ForgeRock ( FORG ) acquisition, according to traders, who cited a Capitol Forum report that was circulating.

The latest news comes after a Politico report after the close on Monday that the DOJ is nearing a deadline for a decision late this month if it will file a lawsuit to block the $2.3 billion acquisition of ForgeRock ( FORG ). The regulator remains concerned that the company is too close a competitor to Ping, which Thoma Bravo acquired last year.

The companies have given the DOJ until July 26 to decide whether the regulator will sue, according to the Politico report. Lawyers for the companies are expected to meet with DOJ antitrust division leadership, including head Jonathan Kanter, on Friday, in an attempt to convince the agency to approve the deal.

Investors have been concerned about the deal after ForgeRock said in December it received a request for more information from the DOJ in regard to its planned $23.25 per share sale to Thoma Bravo.

ForgeRock ( FORG ) shares earlie r fell as much as 3.6% amid the Politico report, though they pared some of their decline after the Federal Trade Commission lost its challenge to block Microsoft's ( MSFT ) planned acquisition of Activision ( ATVI ) when a judge denied a preliminary injunction to stop the deal.

The Thoma Bravo deal for ForgeRock ( FORG ) followed the private equity firm's agreement to buy Ping Identity for $2.8 billion in August .

More on ForgeRock/Thoma Bravo

• ForgeRock drops amid note on antitrust concerns about Thoma Bravo deal
• ForgeRock: Undervalued And Likely To Benefit From AI And Thoma Bravo Acquisition
• ForgeRock deal unlikely to be derailed by competition concerns - analyst
• Antitrust regulator focus on private equity deals creating challenge, Orlando Bravo says

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