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ForgeRock (NYSE:FORG) fell 5% amid a report that the Department of Justice is nearing a decision on whether it will try to challenge private equity from Thoma Bravo's planned acquisition of the identity management company.
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), and the regulator remains concerned that the company is too close a competitor to Ping, which Thoma Bravo acquired last year, according to a Politico report, which cited people familiar with the matter.
The companies have given the DOJ until July 26 to decide whether the regulator will sue, according to the 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.
The DOJ hasn't made a final decision on whether to sue yet, though prosecutors are concerned as internal Ping and ForgeRock documents describe each other as competitors, Politico said, citing some people familiar with the situation.
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 Department 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 would 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.
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