On March 3, 2021, identity software provider, Okta announced in a press release that it will acquire identity provider Auth0, in a stock transaction worth approximately $6.5 billion.
A focus on workforce and customer identity
Okta’s founder and CEO, Todd McKinnon, a former VP of development at Salesforce, says in the press release, “Combining Auth0’s developer-centric identity solution with the Okta Identity Cloud will drive tremendous value for both current and future customers.”
Identity for consumers as customer interactions move online
This merger will enable Okta to service an even broader base, providing more services to the customer identity market.
As G2 analyst Stephanie Graham noted, “Around the world, consumers are using personal devices for working, shopping, schooling, and entertainment. This, in turn, means that consumers are increasingly likely to interact with a business through digital channels—for example, shopping through a website or app, following the company on social media, or interacting with customer support through live chat.” With the increase in consumer interactions online, companies need customer identity solutions to manage and authenticate these end users.
The acquisition is expected to close in July 2021.
Merry Marwig is a senior research analyst at G2 focused on the privacy and data security software markets. Using G2’s dynamic research based on unbiased user reviews, Merry helps companies best understand what privacy and security products and services are available to protect their core businesses, their data, their people, and ultimately their customers, brand, and reputation. Merry's coverage areas include: data privacy platforms, data subject access requests (DSAR), identity verification, identity and access management, multi-factor authentication, risk-based authentication, confidentiality software, data security, email security, and more.