Monday, April 12, 2021
Home > Articles > Okta Acquires Auth0 In $6.5 Billion All-Stock Deal

Okta Acquires Auth0 In $6.5 Billion All-Stock Deal


Publicly-traded identity management company Okta announced on Wednesday 3/3/21 is acquiring one of its leading challengers, Seattle area-based startup Auth0, in an all-stock deal valued at $6.5 billion.

The transaction will provide Auth0 with a fixed number of Okta shares at a price of $276.21 each, the companies said. Shares of Okta had closed Wednesday at $241 per share, giving it a market capitalization of $31 billion. But shares were trading down more than 11% after-hours as Okta also reported quarterly revenue of $234.7 million, up 40% year-to-year, on non-GAAP net income of $8 million Wednesday.

At Auth0, cofounder and CEO Eugenio Pace said the two businesses “agree on a vision” for that identity cloud of the future, or what Pace calls an “identity operating system.”

“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.

Auth0 joins a business that reported $835 million in revenue for its most recent fiscal year and forecasts revenue of $1.08 billion to $1.09 billion for fiscal 2022. Auth0, meanwhile, is expected to reach a revenue run-rate (a 12 month projection based on the most recent month’s pace) of more than $200 million by year’s end, McKinnon said.

Share Button
Pls SUBSCRIBE below to our Youtube channel and mailing list to get fresh updates on money making and inspiring videos and articles.
READ  The Richest Football Referee In The World
Akinola Olusegun is a blogger and publisher of this blog, You can also check out his other blogs : (videos & news), (e-commerce), (news) among others. Follow him via any or all of his social media pages to get fresh posts update.

Leave a Reply

Your email address will not be published. Required fields are marked *