LatamList – Okta, a publicly-traded identity management company recently acquired the Argentine unicorn Auth0. The companies announced that the all-stock deal was valued at $6.5B, which will provide Auth0 with a fixed number of Okta shares at a price of $276.21 each.
“For us, identity has to rise up to be one of those primary clouds, and if it doesn’t it will just be kind of subsumed into other clouds and Okta won’t reach its potential,” said Todd McKinnon, Okta’s CEO and co-founder.
Okta is primarily a business tool for companies to help track and manage their employees’ identities and credentials when using work apps. The startup built its business by selling from the top down, to chief information officers or technical leaders. With the acquisition, Okta gains a service that focuses more on how businesses interact with their customers.
Auth0 co-founder Eugenio Pace commented that Okta was at least several years ahead of them in scale, and by joining forces Auth0’s roadmap would be accelerated by five to ten years.
“What’s exciting to me is that these companies are compatible, identity is not a division, a part of another group or a necessary evil. This is all we do. So together, we have this opportunity to move the needle in terms of what we can offer our customers,” Pace said.
While Auth0 is expected to reach a revenue run rate of more than $200M by the end of the year, Okta reported $835M in revenue for its most recent fiscal year and predicts revenue of $1.08B to $1.09 billion for 2022.
The acquisition is still subject to regulatory approval but is expected to close in the first half of the year.
Read more on Forbes.
