Auth0 Acquisition to Power Okta's Growth in Massive Identity Market

Together, Okta and Auth0 address a broad set of identity use cases.

Edward Gately, Senior News Editor

March 4, 2021

2 Min Read

Okta plans to grow faster in the $55 billion identity market through its $6.5 billion Auth0 acquisition.

Together, Okta and Auth0 address a broad set of identity use cases. Auth0 will operate as an independent business unit inside of Okta. Furthermore, both platforms will be supported, invested in and integrated over time.

Okta and Auth0 have been rivals in the identity market.

Okta and Auth0’s identity platforms can serve the world’s largest organizations, the companies said. In addition, they’re flexible enough to address every identity use case, regardless of the audience or user.

The all-stock Auth0 acquisition should close by the end of July. The boards of directors of Okta and Auth0 have each approved it.

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Okta’s Patrick McCue

Patrick McCue is Okta’s senior vice president of worldwide partners.

“Okta’s partnerships continue to be a driving force and core strategic pillar of our business, both from a technology and go-to-market perspective,” he said. “Integrating Auth0 into the Okta Identity Cloud is an interesting challenge that will result in more innovation for our customers. Okta will continue to operate within our existing partnership agreements separately from Auth0.”

Keep up with the latest channel-impacting mergers and acquisitions in our M&A roundup.

Okta’s partner community includes MSPs, distributors, global SIs, technology partners and solution providers. Auth0 works with ISVs, MSPs and solution providers.

Organizations everywhere are rapidly leveraging identity, Okta said. They’re doing so to streamline processes, reduce costs, maintain the high levels of security, and improve customer experiences to drive business growth.

“This is an exciting investment in the future of identity, and we have notified our partner ecosystem about the Okta-plus-Auth0 agreement,” McCue said. “For now, it’s business as usual. We will notify our partner community of changes following the closing of the transaction.”

Partner Impact

For now, nothing changes for Okta and Auth0 partners, McCue said.

“Partners will maintain their current agreements with Okta and Auth0 respectively, and should continue to reach out to Okta with respect to Okta agreements, and Auth0 with respect to Auth0 agreements,” he said.

Eugenio Pace is Auth0’s CEO and co-founder.

“Okta and Auth0 have an incredible opportunity to build the identity platform of the future,” he said. “We founded Auth0 to enable product builders to innovate with a secure, easy-to-use and extensible customer identity platform. Together, we can offer our customers workforce and customer identity solutions with exceptional speed, simplicity, security, reliability and scalability. By joining forces, we will accelerate our customers’ innovation, and ability to meet the needs and demands of consumers, businesses and employees everywhere.”

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About the Author(s)

Edward Gately

Senior News Editor, Channel Futures

As news editor, Edward Gately covers cybersecurity, new channel programs and program changes, M&A and other IT channel trends. Prior to Informa, he spent 26 years as a newspaper journalist in Texas, Louisiana and Arizona.

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