In a surprising move, Thoma Bravo, an investment firm specializing in cybersecurity companies, has announced its plans to combine two identity and access management (IAM) providers, ForgeRock and Ping Identity. This strategic decision aims to create a company that can compete more effectively against larger players in the industry, such as Microsoft and Okta.
Thoma Bravo has a history of acquiring cybersecurity companies, including Barracuda, Entrust, McAfee, Proofpoint, SonicWall, and Sophos. However, the firm is not known for merging the companies it buys. Analysts believe that the combination of ForgeRock and Ping Identity makes sense due to the similarities in their product offerings.
“There is tremendous overlap between ForgeRock and Ping,” stated Gary Rowe, CEO of TechVision Research. Forrester analyst Merritt Maxim also noted the rationalization that could be achieved through this merger.
The announcement brings an end to the uncertainty that has plagued both ForgeRock and Ping Identity customers for nearly a year regarding the future of these two product lines. Thoma Bravo’s acquisition of ForgeRock for $2.3 billion in October 2022 and its previous acquisition of Ping Identity for $2.8 billion raised questions about the companies’ future directions. Additionally, Thoma Bravo acquired identity and governance administration provider SailPoint for $6.9 billion in the same year. The ForgeRock deal attracted the attention of the US Department of Justice, causing further uncertainty among the customers of both IAM providers.
Under the leadership of Ping Identity founder and CEO Andre Durand, the newly combined company will navigate the integration process. ForgeRock CEO Fran Rosch acknowledged his departure and expressed his intention to assist Durand and the team during a short transition period.
While ForgeRock and Ping Identity have overlapping product offerings, they also possess distinct strengths. ForgeRock is known for its highly scalable IAM solutions and expertise in integrating IoT devices. On the other hand, Ping Identity excels in identity federation and has built a decentralized identity program.
Another advantage of this merger is the combination of journey time orchestration tools offered by both companies. These tools, PingOne DaVinci and ForgeRock Trees, provide workflow visualization capabilities for complex identity and authentication scenarios, serving as valuable features in customer identity and access management (CIAM).
However, the fate of each product within the combined company is yet to be determined. Decisions regarding which products to keep and which ones to deprecate will be crucial for the success of the merger. This process may take time, as observed in previous instances such as Okta’s acquisition of CIAM provider Auth0, which faced unexpected challenges and required 18 months to stabilize.
Henrique Teixeira, a senior research director and analyst covering IAM and fraud detection at Gartner, highlights the minimal overlap between Okta’s and Auth0’s product lines, emphasizing the complexity that ForgeRock and Ping Identity will face as direct competitors. The duration and support provided by Thoma Bravo during the integration process will play a significant role in determining the future productivity and profitability of the combined company.
As customers have been awaiting clarity and direction for the past year, it is expected that ForgeRock and Ping Identity will provide more details about their future plans in the coming months. This protracted period of uncertainty may pose challenges for customers and require patience as the combined company finds its footing in the IAM market.