ForgeRock drops amid note on antitrust concerns about Thoma Bravo deal
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ForgeRock (NYSE:FORG) fell 2% amid some concerns about obtaining antitrust approval for the company's planned sale to Thoma Bravo due to potential concentration in the identity management sector.
There's some worry that by consolidating Ping, which is already owned by Thoma Bravo, with ForgeRock (FORG), there will be only one company that serves the high end of the market, according to traders, who cited a copy of a desk note that was circulating that quoted an industry executive.
Microsoft (MSFT) is also said to be not a real viable option outside of the Microsoft ecosystem, and ForgeRock is said to be trying to gain share in the middle market through some price cutting, according to the traders description of the note. 
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) and Thoma Bravo entered into a timing agreement with the Dept. of Justice in February related to the agency's second request for review. ForgeRock and Thoma Bravo agreed they would certify compliance with the second request no earlier than May 1 and will not consummate the proposed acquisition less than 75 days after compliance with the second request.
The Thoma Bravo deal for ForgeRock (FORG) followed the private equity firm's agreement to buy Ping Identity for $2.8 billion in August.
Matt Stoller, Director of Research at the American Economic Liberties Project, highlighted in a blog post in November that there are a lot of companies that do identity management, including Google (GOOGL), Microsoft (MSFT), IBM (IBM) and a coterie of small firms.
"But if you are a big customer, then there really are only three companies to buy from," Stoller wrote. "You can get it from ForgeRock, a similar size firm Ping Identity, or its largest rival Okta."
The concern about the ForgeRock (FORG) deal comes as Orlando Bravo, chief executive of tech-focused PE giant Thoma Bravo, said in May that antitrust regulators' focus on private equity deals is creating challenges for the industry.

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