The deal makes Okto more complete in providing Identity to the Internet. To persons and machines.
Okta announced it has entered into a definitive agreement to acquire Auth0, a leading identity platform for application teams. The deal will be based on a stock transaction valued at approximately $6.5 billion.
Okta and Auth0 address a broad set of identity use cases, according to Okta’s press release. They say the acquisition will accelerate the companies’ shared vision of enabling everyone to safely use any technology. This will actually shape the future of identity on the internet, they claim.
The transaction will accelerate Okta’s growth in the $55 billion identity market. Auth0 will operate as an independent business unit inside of Okta. But both platforms will be supported, invested in, and integrated over time, according to the company.
The deal will create flexibility and scalability
The resulting solution will give organizations a greater choice in selecting the identity solution for their unique needs. Okta and Auth0’s complementary identity platforms are robust enough to serve the world’s largest organizations, they say. But they are also flexible enough to address every identity use case.
“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, Chief Executive Officer and co-founder, Okta.
“In an increasingly digital world, identity is the unifying means by which we use technology,” he said. “With so much at stake for businesses today, it’s critical that we deliver trusted customer-facing identity solutions.”
Digital transformation puts new focus on identity issues
The global IT market is now being driven by cloud and hybrid IT, digital transformation, and zero-trust security, according to Okta. They claim that an identity platform has become one of the most critical technology investments an organization will make.
The trends toward digital transformation and cloud ops have accelerated over the past year, they say. Companies of all sizes and across every industry had to quickly pivot to deliver engaging customer experiences online.
This rapid pivot means that organizations are rapidly leveraging identity to streamline processes, reduce costs, maintain the highest levels of security. They need to do this to improve customer experiences to drive business growth.
Okta and Auth0 believe they can together offer innovation and value to organizations navigating those transformations, they say.