Okta Signs Definitive Agreement to Acquire Auth0 to Provide Customer Identity for the Internet
March 2021 by Marc Jacob
Okta, Inc. announced it has entered into a definitive agreement to acquire Auth0, a leading identity platform for application teams, in a stock transaction valued at approximately $6.5 billion. Together, Okta and Auth0 address a broad set of identity use cases and the acquisition will accelerate the companies’ shared vision of enabling everyone to safely use any technology, shaping the future of identity on the internet.
The transaction will accelerate Okta’s growth in the $55 billion identity market. Auth0 will operate as an independent business unit inside of Okta, and both platforms will be supported, invested in, and integrated over time — becoming more compelling together. As a result, organizations will have greater choice in selecting the identity solution for their unique needs. Okta and Auth0’s comprehensive, complementary identity platforms are robust enough to serve the world’s largest organizations and flexible enough to address every identity use case, regardless of the audience or user.
With continued global market tailwinds of cloud and hybrid IT, digital transformation, and zero-trust security, an identity platform has become one of the most critical technology investments an organization will make. These trends have accelerated over the past year as companies of all sizes and across every industry had to quickly pivot to deliver engaging customer experiences online. Organizations everywhere are rapidly leveraging identity to streamline processes, reduce costs, maintain the highest levels of security, and improve customer experiences to drive business growth. Okta and Auth0 are both committed to delivering innovation and value to organizations navigating those transformations.
Details Regarding the Proposed Acquisition
Okta will acquire Auth0 for approximately $6.5 billion in Okta Class A common stock (subject to customary purchase price adjustments and certain customary cash payouts in lieu of stock) based on a fixed number of Okta shares and an Okta share price of $276.21. The boards of directors of Okta and Auth0 have each approved the transaction. An investor presentation about the transaction is available on our investor relations website at investor.okta.com.
The proposed transaction is subject to receipt of required regulatory approvals and satisfaction or waiver of other customary closing conditions and is expected to close during Okta’s second quarter of fiscal year 2022, the quarter ending July 31, 2021.
Additional details and information about the terms and conditions of the acquisition will be available in a current report on Form 8-K to be filed by Okta with the Securities and Exchange Commission.
Morgan Stanley & Co. LLC is serving as financial advisor and Latham & Watkins LLP is serving as legal counsel to Okta. Qatalyst Partners is serving as financial advisor and Perkins Coie LLP is serving as legal counsel to Auth0.