Okta buys Auth0 to create verification giant

All-stock deal is valued at $6.5 billion

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In a major shakeup in theidentity managementspace, one of the largest makers ofidentity verification and management software, Okta Inc., has agreed to buy its smaller rival, Auth0 for $6.5 billion.

Okta offers solutions to help companies track and manage their employees’ identities and credentials, while Auth0 enables developers to add authentication services to their apps.

“What’s exciting to me is that these companies are compatible, identity is not a division, a part of another group or a necessary evil. This is all we do. So together, we have this opportunity to move the needle in terms of what we can offer our customers,” Eugenio Pace, co-founder and CEO of Auth0 toldForbes.

Identity operating system

Post merger, the all-stock deal will net Auth0 a fixed number of Okta shares at a pre-determined price of $276.21 each.

Sharing his views about the acquisition withForbes, Okta CEO Todd McKinnon pointed out that the merger will allow the company to become one of the “five or six primaryclouds” that customers will look to as market leaders, in the same league asMicrosoft,SalesforceandZoom.

Pace agreed with McKinnon’s vision for the identity cloud of the future, which he calls the “identityoperating system.”

Reportedly, the acquisition has been agreed to by the boards of both the companies, but is still subject to regulatory approval, though the companies expect the merger to close in the first half of the year.

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Via:Forbes

With almost two decades of writing and reporting on Linux, Mayank Sharma would like everyone to think he’sTechRadar Pro’sexpert on the topic. Of course, he’s just as interested in other computing topics, particularly cybersecurity, cloud, containers, and coding.

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