Thoma Bravo is expected this week to close its acquisition of ForgeRock Inc., a cybersecurity company it agreed to buy last year for $2.3 billion. 

Bloomberg reported the development today, citing sources familiar with the matter. The U.S. Department of Justice had reportedly considered filing a lawsuit to block the acquisition. Bloomberg’s sources said that officials eventually decided not to pursue the litigation, clearing the way for the deal to close.

NYSE-listed ForgeRock sells a software platform that helps companies manage user access to their applications. The platform can process login requests from customers and employees, as well as perform related tasks. One ForgeRock feature uses artificial intelligence to detect malicious signin requests that use correct account credentials.

ForgeRock posted revenue of $58.3 million last quarter, up 22% from the same time a year earlier. The company earlier disclosed that it has more than 1,300 customers. Those customers include Comcast Corp., Allianz SE and other major enterprises.

Thoma Bravo inked a $2.3 billion deal to acquire ForgeRock last October. A few weeks ago, Politico reported that the Justice Department was considering filing a lawsuit to block the transaction. The department was reportedly concerned that the deal could negatively impact the cybersecurity market.

Shortly before it announced plans to buy ForgeRock, Thoma Bravo acquired two other cybersecurity companies called Ping Identity Inc. and SailPoint Inc. Like ForgeRock, the two companies sell software that helps enterprises manage user access to their applications. The three software makers’ feature sets overlap in several areas.

Thoma Bravo is reportedly expected to merge ForgeRock and Ping Identity into a single company. According to Politico, Justice Department officials were concerned that the combined company would have too strong a market position. The department reportedly launched an “in-depth antitrust review” of the ForgeRock acquisition to understand its potential market impact.

The review is said to have focused largely on the CIAM segment, one of ForgeRock’s main focus areas. CIAM, or customer identity and access management, tools help companies process login requests from customers. ForgeRock reportedly argued that its sale to Thoma Bravo should be approved because it faces strong competition from other market players.

The Justice Department’s reported decision not to challenge the acquisition didn’t take Wall Street entirely by surprise. On Monday, investors reportedly estimated that the deal’s chances of closing ranged “from almost 60% to a bit above 70%.” Now that the possibility of a legal challenge from the Justice Department is no longer on the table, Thoma Bravo is expected to close the transaction this week. 

Thoma Bravo is one of the most prolific investors in the enterprise software market. Over the past few years, the private equity firm has made acquisitions in not only the cybersecurity segment but also other areas. Last December, for example, it inked a $8 billion deal to buy Coupa Inc., which develops software that helps companies manage their business expenses. 

Image: ForgeRock