Ping Identity Acquisition: Key Details, Impact, and What Comes Next

Thoma Bravo's acquisition of Ping Identity for $2.8 billion marks a significant move in the enterprise identity security sector. This all-cash transaction underscores the growing importance of secure and seamless digital experiences. With this acquisition, Thoma Bravo aims to enhance Ping Identity's innovation and customer service capabilities, positioning it as a key player in the industry.

What Is Ping Identity?

Founded in 2002, Ping Identity specializes in identity security solutions for digital enterprises. Its core offerings include customer identity, workforce identity, and B2B identity solutions, along with advanced capabilities like Single Sign-On (SSO), Multi-Factor Authentication (MFA), and Identity Orchestration. Ping Identity stands out in the market with its unmatched flexibility, resilience, and security, and is recognized by leading analysts for its comprehensive integration and tailored industry solutions.

Who Acquired Ping Identity?

Thoma Bravo is a leading private equity investment firm specializing in the software and technology sectors. The firm provides capital and strategic support to experienced management teams and growing companies. Thoma Bravo manages over $179 billion in assets and has completed approximately 520 transactions. Known for its significant investments and strategic acquisitions, the firm holds a highly influential position in the private equity market, particularly within the technology sector.

When Was Ping Identity Acquired?

Thoma Bravo completed its acquisition of Ping Identity on October 18, 2022. This acquisition came at a time when the importance of identity security and seamless digital experiences was rapidly increasing. The deal, initially announced on August 3, 2022, and approved by Ping Identity stockholders on October 17, 2022, underscores the growing focus on digital-first strategies and the need for robust identity and access management solutions in the evolving digital economy.

Why Was Ping Identity Acquired?

• Market Expansion: The acquisition allows Ping Identity to better serve global enterprises on their digital transformation journey, indicating a strategic move to expand its market reach and capabilities. Additionally, the merger with ForgeRock aims to create a single entity that can better serve customers across the dynamic and fast-growing Identity and Access Management market.
• Technology Integration: Ping Identity aims to combine its best-in-class identity solutions with third-party services to enhance digital security and user experiences. This integration supports features like password removal, fraud prevention, and Zero Trust through a simple drag-and-drop canvas. The overlapping product lines of ForgeRock and Ping Identity, such as PingOne DaVinci and ForgeRock Trees, will be rationalized to offer more comprehensive and innovative IAM solutions.
• Competitive Advantage: The acquisition by Thoma Bravo is expected to accelerate Ping Identity's innovation and enhance customer experiences. The support from Thoma Bravo, a leading software investment firm, provides Ping Identity with the resources to drive growth initiatives and implement best practices. By merging ForgeRock and Ping Identity, Thoma Bravo aims to create a stronger competitor in the IAM market, leveraging the strengths of both companies to address complex customer IAM use cases more effectively.

Acquisition Terms

• Acquisition Price: $2.8 billion
• Payment Method: All-cash transaction
• Key Conditions or Agreements:
  • The agreement to be acquired was announced on August 3, 2022.
  • The acquisition was approved by Ping Identity stockholders at a Special Meeting of Stockholders held on October 17, 2022.
  • Ping Identity stockholders are entitled to receive $28.50 in cash for each share of Ping Identity common stock they owned.
  • Ping Identity's common stock will cease trading and be delisted from the New York Stock Exchange.
  • The transaction is subject to customary closing conditions, including regulatory approvals.
  • Vista Equity Partners, owning approximately 9.7% of Ping Identity's outstanding shares, agreed to vote in favor of the transaction.

Impact on Ping Identity

The acquisition of Ping Identity by Thoma Bravo has led to significant changes in the company's operations and management. Ping Identity's common stock has ceased trading and will be delisted from the New York Stock Exchange, transitioning the company to a privately held entity. The merger with ForgeRock, another Thoma Bravo acquisition, has resulted in Ping Identity founder and CEO Andre Durand leading the combined company, while ForgeRock CEO Fran Rosch will depart after a brief transition period. This consolidation aims to streamline overlapping product lines and enhance the company's ability to serve the global Identity and Access Management (IAM) market.

The acquisition is expected to positively impact Ping Identity's product offerings and services. With Thoma Bravo's support, Ping Identity plans to accelerate its cloud transformation and deliver more robust identity security solutions. The merger with ForgeRock will enable the combined entity to offer enhanced products, broader geographic support, and increased innovation. While employees face a period of uncertainty, the overall reaction has been optimistic, with the potential for improved customer experiences and stronger market positioning. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly and efficiently.