Okta has acquired Auth0 in an effort to raise its profile in the digital identity sector. The deal was completed through a stock transaction valued at roughly $6.5 billion.
Under the terms of the new agreement, Auth0 will continue to operate as an independent business unit under the guidance of Auth0 Co-Founder CEO Eugenio Pace, who will in turn report to Okta Co-Founder and CEO Todd McKinnon. Together, the two companies are hoping to supply organizations with more comprehensive identity services, with Okta specializing in cloud coverage while Auth0 delivers an identity platform that is popular with app developers.
In that regard, Okta credited Auth0 for developing a user-friendly solution that provides customers with strong documentation tools. Okta indicated that the companies will integrate their technologies with one another over time, and that Auth0’s platform would be used to improve its own Okta Identity Cloud solution.
“A single, unified identity platform has the power to transform an organization by providing seamless and secure access for both customers and employees,” said Okta’s McKinnon. “Okta and Auth0 are both cloud-first companies. By joining forces, we’ll give our customers more choice and flexibility, driving tremendous value and enabling them to accelerate innovation.”
“As Okta and Auth0 join forces, I’m more confident than ever that we will deliver on our shared vision to secure access for everyone,” added Auth0’s Pace. “Auth0’s focus has always been on enabling product builders to innovate, and now as one company with a shared vision and combined resources, that innovation will only increase.”
Okta will discuss its new financial outlook on May 26, when it releases its results for the first quarter of the 2022 fiscal year. The company recently released new workflow and risk management features and an updated version of its End User Dashboard. Auth0, meanwhile, has added solutions from Incognia and 1Kosmos to its Auth0 Marketplace.