As Okta announced earnings today after the bell, it revealed that it’s buying cloud identity startup Auth0 for a hefty $6.5 billion.
With Auth0, Okta gets a cloud identity company that helps developers embed identity management into applications, adding an entirely new dimension to its identity platform. “Today, we’re taking a significant step forward — I’d go so far to call it a “leap” — to enhance the Okta Identity Cloud. We announced our agreement to join forces with Auth0, a leading identity platform for developers,” Okta co-founder and CEO Todd McKinnon wrote in a blog post announcing the deal.
Auth0 users can breathe a sigh of relief in that McKinnon writes that the company will operate as an independent unit inside of Okta as they look for paths to integration in the coming months.
Eugenio Pace, co-founder and CEO Auth0 sees his company together with Okta as powerful combination in the identity management space, and he’s not just hyping the deal when he says that. “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,” Pace said in a statement.
Okta had a pretty good quarter too while it was at it, announcing $234.7 million in revenue up 40% year over year, but Wall Street appears to be unhappy with the deal with the stock price down 6.9% in after hours trading.
This is a breaking story. More to come.
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