The stock of Okta, Inc. (NASDAQ: OKTA), a leading independent identity provider, has been dropping 10.46% in pre-market trading today following news of an acquisition deal by the company announced yesterday.
What does it entail?
The Okta Identity Cloud enables enterprises and government agencies to connect the right people with the right technology at the right time. It’s over 7,000 pre-built integrations provide simple and secure access to people and organizations everywhere to applications and infrastructure providers, giving them the confidence to succeed. JetBlue, Nordstrom, Siemens, Slack, T-Mobile, Takeda, Teach for America, and Twilio are just some of the companies who trust Okta to protect their customers’ as well as workforce identities.
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Unveiling the acquisition of Auth0, a leading identity platform for application teams, Okta today announced that it has been acquiring the company in a stock deal valued at approximately $6 billion.
- With the combination of Okta and Auth0, a wide range of identity use cases can be addressed, and the company’s shared vision of enabling everyone to safely engage with the internet can be realized at a much more rapid pace.
- With the acquisition, Okta will expand in the $55 billion identity market.
- Auth0 will remain a separate business unit within Okta, and the two platforms will be supported, integrated, and developed together, resulting in a more compelling offering as a whole.
- Okta will pay roughly $6 billion in Okta Class A common stock to acquire Auth0 for $276.21 a share.
- Auth0 and Okta each have their boards of directors approve the transaction.
- Receiving regulatory approvals and resolving customary closing conditions are required for the proposed transaction.
- In Okta’s second quarter of the fiscal year 2022, ending July 31, 2021, the transaction is expected to close.