Just over a year after the digital identity management company went public, ForgeRock will be purchased by buyout firm Thoma Bravo in an all-cash deal valued at approximately US$2.3 billion (A$3.7 billion).
The decision comes at a time when takeover activity by private equity purchasers has increased as valuations of publicly traded tech businesses fell as a result of a wider stock market selloff that was sparked by high inflation and tightening monetary policy.
Shareholders of ForgeRock will get $US23.25 per share, which is a premium of nearly 53.4 percent over the stock’s most recent closing price.
An active investor in the software industry, Thoma Bravo has so far this year purchased the cybersecurity company SailPoint, agreed to purchase Ping Identity Holding, and shown interest in both Australia’s Nearmap and the British company Darktrace Plc.
based in San Francisco Identity and access management services are offered by ForgeRock for end users, businesses, and internet of things gadgets.
Demand for digital security solutions has increased as a result of the distributed workforce and a spike in cyberattacks on businesses during the pandemic, which has fueled expansion for organisations like ForgeRock that supply tools and software to counter such threats.
ForgeRock had raised about US$230 million in growth capital from investors before going public in 2021, including Accel, KKR & Co., and Riverwood Capital.
In the first half of 2023, the deal is anticipated to be completed.