ForgeRock’s stock has taken a hit following reports that the Department of Justice (DOJ) may sue to block the acquisition deal between ForgeRock and Thoma Bravo. Traders have cited a circulating Capitol Forum report, stating that the DOJ is leaning towards filing a lawsuit challenging the $2.3 billion acquisition.
This latest development comes after Politico reported that the DOJ is nearing a deadline for a decision on whether to file a lawsuit by the end of this month. The DOJ is concerned that ForgeRock, as a company, is a direct competitor to Ping, which Thoma Bravo acquired last year.
According to Politico’s report, the companies have given the DOJ until July 26 to make a decision on whether they will take legal action. In an effort to convince the agency to approve the deal, lawyers representing both ForgeRock and Thoma Bravo are set to meet with the DOJ’s antitrust division leadership, including head Jonathan Kanter, on Friday.
Investors have grown increasingly concerned about the acquisition deal ever since ForgeRock disclosed in December that it had received a request for more information from the DOJ regarding the planned sale at $23.25 per share to Thoma Bravo.
In conclusion, the DOJ’s potential decision to sue to block the acquisition deal between ForgeRock and Thoma Bravo has led to a drop in ForgeRock’s stock. Investors anxiously await the outcome of the DOJ’s deliberation as lawyers representing the companies prepare to meet with the antitrust division leadership.
