ForgeRock Acquisition: Key Details, Impact, and What Comes Next

Ping Identity's acquisition of ForgeRock, finalized by Thoma Bravo, marks a significant consolidation in the identity and access management sector. Valued at $2.3 billion, this merger aims to leverage the strengths of both companies, enhancing their product offerings and market reach. The combined entity is poised to deliver more comprehensive identity solutions, benefiting customers with improved security and innovation.

What Is ForgeRock?

Founded in 2010, ForgeRock specializes in identity and access management solutions. Its core products include identity management, access management, and identity governance. ForgeRock differentiates itself with its comprehensive platform that offers seamless integration and scalability, catering to both enterprise and consumer needs. The company is recognized for its robust security features and flexibility, making it a preferred choice for organizations looking to enhance their digital identity infrastructure.

Who Acquired ForgeRock?

Ping Identity is a leader in providing identity security solutions for digital enterprises. The company offers a comprehensive identity management platform, including Single Sign-On (SSO), Multi-Factor Authentication (MFA), and Identity Management. Additionally, PingOne Protect helps detect and prevent threats. Recognized by industry analysts like Gartner and Forrester, Ping Identity serves major organizations across various sectors, underscoring its significant market influence and trust. The platform is known for its flexibility, resilience, and security.

When Was ForgeRock Acquired?

Ping Identity completed its acquisition of ForgeRock on August 23, 2023. This merger comes at a time when the Identity and Access Management (IAM) market is rapidly evolving, with increasing emphasis on digital security and seamless user experiences. The timing also reflects a broader industry trend of consolidation, where larger firms acquire specialized companies to enhance their service offerings and expand market reach. This strategic move positions the combined entity to better serve the growing demands of the IAM sector.

Why Was ForgeRock Acquired?

• Market Expansion: The merger of Ping Identity and ForgeRock aims to create a stronger, more comprehensive identity solution provider. This combination allows the new entity to better serve customers with a more complete product portfolio and broader geographic support, enhancing their market presence and competitive positioning. Additionally, the merger positions the combined company to compete more effectively against larger players like Microsoft and Okta, expanding their market reach and capabilities in the IAM sector.
• Technology Integration: The integration of PingOne services with ForgeRock's Identity Cloud, now renamed PingOne Advanced Identity Cloud, is a key benefit. This includes specific services like DaVinci, Protect, Verify, Credentials, and Authorize becoming available to ForgeRock customers. The combined company will leverage enhanced products and services, broader geographic support, and increased innovation, delivering improved identity security experiences for customers, employees, and partners worldwide.
• Competitive Advantage: The merger creates a single market-leading vendor with unparalleled identity expertise, offering a more complete and differentiated product portfolio. The combined strengths in CIAM, Workforce identity, fraud and risk protection, and other innovative capabilities position the new entity to compete more effectively against larger players in the identity market. This strategic move aims to accelerate the delivery of identity security experiences, making digital interactions more secure and seamless.

Acquisition Terms

• Acquisition Price: Approximately $2.3 billion
• Payment Method: All-cash transaction
• Key Conditions or Agreements:
  • ForgeRock stockholders are entitled to receive $23.25 in cash for each share of ForgeRock class A and class B common stock they owned.
  • ForgeRock's class A common stock will be delisted from the New York Stock Exchange.
  • The acquisition agreement was announced on October 11, 2022, and approved by ForgeRock stockholders on January 12, 2023.
  • The U.S. Department of Justice investigated the merger for over 12 months due to potential customer impact but ultimately approved the deal.
  • Ping Identity founder and CEO Andre Durand will lead the newly combined company, while ForgeRock CEO Fran Rosch will depart but support the transition.

Impact on ForgeRock

The acquisition of ForgeRock by Ping Identity has led to significant changes in operations and management. ForgeRock has been integrated into Ping Identity, resulting in the delisting of ForgeRock's class A common stock from the New York Stock Exchange. The joint leadership team is now executing a roadmap to unify the two companies, including a unified cloud admin experience and the option for ForgeRock Identity Cloud customers to consume PingOne services. This consolidation has also led to the rationalization of overlapping product lines, with decisions pending on which products to retain or deprecate.

The merger has had a notable impact on product offerings and services. Customers can expect continuous improvements in critical areas such as access management, identity management, and orchestration. New services will be offered on existing platforms, including PingOne services to ForgeRock customers and identity lifecycle management to Ping customers. While the merger aims to enhance customer experiences, it has also introduced uncertainties, particularly regarding potential product sunsetting and forced migrations. Employees and customers alike are navigating these changes, with some employees facing potential layoffs or reassignments. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly.