Identity and access management company Okta Inc. (OKTA) said it had reached a deal to purchase Auth0 its smaller competitor in a deal worth $6.5 billion. This deal will be an all stock one, so far it will be the largest software deal in 2021.
Okta majorly provides software which assists companies to manage and secure user authentication into applications. Developers also use the software to build identity controls into applications.
Okta is aiming to capitalize on Auth0’s customer identification product to increase its growth rate in the identity market. The identity market experienced some significant growth during the pandemic since workers had to work remotely. Currently, the identity market is valued at $55 billion.
Okta is largely known for its employee identification systems, the company has been growing its customer identification business which now accounts for 25% of its revenue.
“The customer part is growing faster than the workforce part. We have 10,000 customers, and there are millions of customers that could use both of our solutions,” said Chief Executive of Okta, Todd McKinnon.
On the other side, Auth0 is largely known for its customer identification business which is available across applications.
Okta is expecting to generate over $200 million in revenue this year. “The customer part is growing faster than the workforce part. We have 10,000 customers, and there are millions of customers that could use both of our solutions,” added Todd McKinnon.