Identity and access management (IAM) specialists Okta and Auth0 are to come together in a $6.5bn (€5.4bn/£4.65bn) acquisition that the firms claim will accelerate a “shared vision of enabling everyone to safely use any technology”.
The all-stock transaction, which was signed off today, is one of the largest cyber security deals of recent times and, it is hoped, will enable the two firms to address an even broader set of IAM use cases than at present, as well as spurring new growth in the IAM sector.
Okta said Auth0 will continue to operate as an independent business. Both firms’ platforms continue to be supported and invested in, although a future integration between the two is planned over time.
“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, Okta’s CEO, and co-founder.
“In an increasingly digital world, identity is the unifying means by which we use technology – both at work and in our personal lives. With so much at stake for businesses today, we must deliver trusted customer-facing identity solutions. Okta and Auth0’s shared vision for the identity market, rooted in customer success, will accelerate our innovation, opening new ways to leverage identity to meet their business needs.
“We are thrilled to join forces with the Auth0 team, as they are ideal allies in building an identity for the internet and establishing identity as a primary cloud,” he said.
The firms said the tie-up would give customers more choice in selecting the IAM service that meets their needs. The complementary platforms are both “robust enough” and “flexible enough” to address multiple identity use cases across a wide range of organizations.
Already a critical element of any organization’s security posture thanks to overarching trends such as increased cloud usage, hybrid IT, zero trust, and digital transformation in general, the importance of IAM has skyrocketed during the pandemic as remote working forces users outside of the confines of the enterprise network. The sector is now valued at $55bn.
Okta and Auth0 said organizations everywhere now had to quickly leverage identity to streamline their disrupted processes, reduce their increasing costs, and improve customer and user experiences while maintaining high-security levels.
“Okta and Auth0 have an incredible opportunity to build the identity platform of the future,” said Eugenio Pace, CEO, and co-founder of Auth0. “We founded Auth0 to enable product builders to innovate with a secure, easy-to-use and extensible customer identity platform.
“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.”