Okta to acquire Auth0

Okta is to acquire Auth0 in a deal worth $6.5 billion in a move it says will accelerate its growth in the $55 billion identity market

Posted 4 March 2021 by

Okta is to acquire Auth0 in a deal worth $6.5 billion. The firm says the move will accelerate its growth in the $55 billion identity market.

Together, the two digital identity vendors say they can address a broad set of use cases. Auth0 will operate as an independent business unit inside of Okta, and both platforms will be supported, invested in, and integrated over time.

“Combining Auth0’s developer-centric identity solution with the Okta Identity Cloud will drive tremendous value for both current and future customers,” said Todd McKinnon, CEO and co-founder of Okta, in a statement.

“In an increasingly digital world, identity is the unifying means by which we use technology — both at work and in our personal lives. With so much at stake for businesses today, it’s critical that we deliver trusted customer-facing identity solutions. Okta’s and Auth0’s shared vision for the identity market, rooted in customer success, will accelerate our innovation, opening up new ways for our customers to leverage identity to meet their business needs. We are thrilled to join forces with the Auth0 team, as they are ideal allies in building identity for the internet and establishing identity as a primary cloud.”

‘Identity platform of the future’

The firm cites “global market tailwinds of cloud and hybrid IT, digital transformation, and zero-trust security”, that have made an identity platform “one of the most critical technology investments an organisation will make.”

These trends, it said, have accelerated over the past year as companies have had to quickly pivot to deliver engaging customer experiences online.

“Organisations everywhere are rapidly leveraging identity to streamline processes, reduce costs, maintain the highest levels of security, and improve customer experiences to drive business growth. Okta and Auth0 are both committed to delivering innovation and value to organizations navigating those transformations,” it said.

“Okta and Auth0 have an incredible opportunity to build the identity platform of the future,” said Eugenio Pace, CEO and co-founder at Auth0. “We founded Auth0 to enable product builders to innovate with a secure, easy-to-use, and extensible customer identity platform. Together, we can offer our customers workforce and customer identity solutions with exceptional speed, simplicity, security, reliability and scalability. By joining forces, we will accelerate our customers’ innovation and ability to meet the needs and demands of consumers, businesses and employees everywhere.”

The transaction is expected to close during Okta’s second quarter of fiscal year 2022, the quarter ending July 31, 2021.