Okta will acquire fellow identity provider Auth0 in an all-stock transaction worth approximately US$6.5 billion (A$8.3 billion).
Under the agreement, Auth0 “will operate as an independent business unit inside of Okta, and both platforms will be supported, invested in, and integrated over time”, the companies said.
“As a result, organisations will have greater choice in selecting the identity solution for their unique needs,” Okta said.
The boards of directors of Okta and Auth0 “have each approved the transaction”.
It is expected to close during Okta’s second quarter of fiscal year 2022, the quarter ending July 31, 2021.
Identity services are critical to organisations that are moving into mostly cloud-based, online environments, and therefore need to authenticate large numbers of staff or customers to provide access.
Okta and Auth0 said they intended to jointly “address a broad set of identity use cases”.
“The acquisition will accelerate the companies’ shared vision of enabling everyone to safely use any technology, shaping the future of identity on the internet,” they said.