Identity management company Okta has announced that it will acquire Auth0, one of its leading challengers. The company said that the deal will cost UAS 6.5 billion. This is when the company was valued at just USD 1.92 billion in July last year. It had then raised USD 120 million from Salesforce Ventures. The helped the company to triple its money in just eight months. According to people privy to the development, the deal is expected to be finalized by the end of July this year. The transaction will provide Seattle area-based startup with a fixed number of Okta shares at a price of USD 276.21 each. Okta provides cloud software that allows employees to access all apps through a secure online service
This deal will help Okta add an entirely new dimension to its platform. The deal is well-timed as it comes when more and more business increasing their dependency on cloud-based applications. Okta CEO and co-founder Todd McKinnon said that the deal would place the company in a better position in the identity space. “There are very few such players and to rise there need to be all the options available. It should be such that both customers and the workforce can be handled. The workforce has always been our traditional business and customer is the new one,” McKinnon was quoted as saying.
Auth0 CEO and co-founder Eugenio Pace said that deal with Okta will make us a powerful combination in this space. “This is not a hype that is being given to the deal. The deal will let the companies offer both customers and the workforce and customer identity solutions like never before. This can be now done at exception speed, reliability, scalability, and security. This will help our customers to accelerate their innovations and ability. Meanwhile, Okta announced USD 234.7 million in revenue. This was up by 40 percent year over year.