Okta to Buy Auth0 for $6.5 Billion
Healthcare Info Security
The security firm Okta shook up the identity and access management market Wednesday by announcing a $6.5 billion deal to acquire the customer IAM technology supplier Auth0. Two other cybersecurity M&A deals were also announced this week.
Todd McKinnon, co-founder and CEO of Okta, says Auth0 initially will operate as an independent business unit inside Okta, with the platforms eventually being integrated. The goal is to combine Auth0's developer-oriented solution with the Okta Identity Cloud, he says.
In a note to clients Thursday, JPMorgan analysts say the deal will have a short-term impact on Okta's bottom line but will make the company more competitive in the long run. Okta's primary focus has been on identity and access management solutions for use with internal employees as well as external customers.
"Auth0 is focused on...