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.Pls SUBSCRIBE below to our Youtube channel and mailing list to get fresh updates on money making and inspiring videos and articles.