Shares of ForgeRock (NYSE: FORG) are having an amazing week. The stock rose 42.4% from last Friday's closing bell to the end of trading on Thursday, according to data from S&P Global Market Intelligence. There's no big mystery behind this move. The provider of digital identity services is going private, accepting a $2.3 billion buyout offer from private investment firm Thoma Bravo on Tuesday morning. Share prices rose 48.4% that day alone.

Thoma Bravo is paying $23.25 per share in cash for ForgeRock. That's a 44% premium over the stock's average price in the 30 days before the offer was unveiled. It's not unusual for buyout targets to trade slightly below the final offer price for a while, since investors have to consider the risk that the deal might fall through for some reason. In this case, ForgeRock's stock is roughly 3% below Thoma Bravo's agreed buyout price.

The stock is also trading 38% below the closing price on Sept. 16, 2021, which was ForgeRock's first day as a publicly traded company. Notably, Thoma Bravo is buying its third identity services expert in six months, following the $2.8 billion deal for Ping Identity (NYSE: PING) and the $6.9 billion takeover of SailPoint.

Continue reading

Source Fool.com