ForgeRock jumps after disclosing another potential bidder in filing
ForgeRock (NYSE:FORG) rose 8.9% in after hours trading after a filing indicated that an unidentified strategic buyer was recently considering making an offer for maker of identification-verification software.
On Nov. 30, a representative for Strategic E notified a representative of ForgeRock that the party was considering making a proposal for the company, according to a proxy filing. ForgeRock (FORG) hasn't received any further communications from Strategic E.
Thoma Bravo agreed to acquire ForgeRock (FORG) for $23.25 per share in cash in October. News of a potential bidding war is likely welcome to some investors who are long the stock as there has been concern about regulatory issues with the current deal.
Thoma Bravo pulled and refiled its ForgeRock (FORG) merger notice with U.S. antitrust regulators last month to give the Dept. of Justice more time to review the combination. The spread in the deal had widened amid investor concern the company's $2.3 billion sale to Thoma Bravo may see an in-depth U.S. antitrust review due to concentration in the identity management sector.
The Thoma Bravo deal for ForgeRock (FORG) comes after the private equity firm agreed to buy Ping Identity for $2.8 billion in August and SailPoint Technologies for $6.9 billion in April.
ForgeRock (FORG) short interest is 15%.
Matt Stoller, Director of Research at the American Economic Liberties Project, said in a post last month that a deal would reduce the number of players in the IAM space to three from two as ForgeRock may merge with its competitor Ping Identity leaving only Okta (OKTA) as the other major company competitor in the space.
A Morgan Stanley analyst late last month argued that the Thoma Bravo deal is likely to close in the 1H of next year as the antitrust concerns may be overblown. The MS analyst also highlighted that Microsoft (MSFT) and Okta (OKTA) have become more competitive in the large enterprise segment.