Okta completes acquisition of Auth0

Identity leaders combine developer and enterprise expertise, offering customers more flexibility

SINGAPORE  – Media OutReach – 4 May 2021 – Okta, Inc. (NASDAQ:OKTA),
the leading independent identity provider, today announced the successful
completion of its acquisition of Auth0, a leading identity platform for
application teams. Together, Okta and Auth0 address a broad set of digital
identity use cases, providing secure access and enabling everyone to safely use
any technology. The stock transaction, valued at approximately $6.5 billion,
will accelerate Okta’s growth in the $80 billion identity market.

 

Auth0 will operate as an
independent business unit within Okta, led by Auth0 Chief Executive Officer and
Co-Founder Eugenio Pace, reporting directly to Todd McKinnon, Chief Executive
Officer and Co-Founder of Okta. Both Okta’s and Auth0’s platforms will be
supported, invested in, and integrated over time — accelerating innovation and
making the Okta Identity Cloud even more compelling for the full spectrum of
customers and users.

 

“Identity is one of the most
strategic investments an organization will make today. A single, unified
identity platform has the power to transform an organization by providing
seamless and secure access for both customers and employees,” said McKinnon.
“Okta and Auth0 have always shared a vision for the identity market. We’re also
both cloud-first, customer-first companies. By joining forces, we’ll give our
customers more choice and flexibility, driving tremendous value and enabling
them to accelerate innovation. Together, we will shape the future of identity
on the internet, empowering developers to build with identity at the
foundation.”

 

“As Okta and Auth0 join
forces today, bringing together two exceptional companies, I’m more confident
than ever that we will deliver on our shared vision to secure access for
everyone,” said Pace. “Auth0’s focus has always been on enabling
product builders to innovate, and now as one company with a shared vision and
combined resources, that innovation will only increase.”

 

Okta’s and Auth0’s
comprehensive, complementary, and flexible identity platforms solve every
identity use case, regardless of the audience or user. Okta pioneered
cloud-based identity, offering enterprise-grade reliability and world-class
security while prioritizing customer success for organizations of all sizes.
Auth0 was built by developers for developers. Application builders around the
world are loyal to Auth0 for its extensibility, ease of use, scope of
documentation, and developer-friendly experience. With combined expertise
across developer communities and the enterprise, Okta and Auth0 will provide
enhanced depth and breadth of identity solutions and will be even better suited
to integrate quickly into the modern tech stack of today’s developers.

 

“At Kiva, we’re on a mission
to expand financial access to help underserved communities around the world
thrive. Identity plays an essential role in making that happen,” said Ken
Leung, EVP of Engineering, Kiva. “Today, we leverage Auth0 to provide
secure authentication to Kiva’s partners and lenders, and Okta for workforce
identity, giving our team access to the critical technologies they need to best
serve the millions of global entrepreneurs in our network.  We trust both Okta and Auth0 to connect our
people and technology, and are excited to see how they evolve and innovate
together.”

 

“Credence goes to those who
can help us identify one another in a digital world,” said Jay Bretzmann,
Program Director for Cybersecurity Products, IDC.  “Okta and Auth0 provide the cloud-ready,
developer-friendly tools to help in the fight. They’re building the platforms
and technology we’ll need to take the next steps. Simple, elegant, and
customer-centric.”

 

Financial Outlook

With the completion of the
acquisition of Auth0, Okta intends to provide a combined financial outlook for
fiscal year 2022 in conjunction with the release of its first quarter 2022
financial results on Wednesday, May 26, 2021. Okta will host a video webcast
that day at 2:00 p.m. Pacific time (5:00 p.m. Eastern time) to discuss its
results and combined company financial outlook. A webcast replay will be
accessible from Okta’s investor relations website at https://investor.okta.com. The press release will be accessible from
Okta’s investor relations website prior to the commencement of the event.

 

Advisors

Morgan Stanley & Co. LLC
served as financial advisor and Latham & Watkins LLP served as legal
counsel to Okta. Qatalyst Partners served as financial advisor and Perkins Coie
LLP served as legal counsel to Auth0.

 

Cautionary Language Concerning
Forward-Looking Statements

This press release contains
forward-looking statements relating to expectations, plans, and prospects
including statements relating to the anticipated benefits that will be derived
from this transaction, the expected acceleration of Okta’s growth as a result
of this transaction, the impact to the Okta Identity Cloud, expected synergies
resulting from the transaction and expansion of Okta’s customer base. These
forward-looking statements are based upon the current expectations and beliefs
of Okta’s management as of the date of this release, and are subject to certain
risks and uncertainties that could cause actual results to differ materially
from those described in the forward-looking statements including, without
limitation, the risk of adverse and unpredictable macro-economic conditions,
the failure to achieve expected synergies and efficiencies of operations
between Okta and Auth0, the ability of Okta and Auth0 to successfully integrate
their respective businesses, the failure to timely develop and achieve market
acceptance of the combined business, the loss of any Auth0 customers, the
ability to coordinate strategy and resources between Okta and Auth0, and the
ability of Okta and Auth0 to retain and motivate key employees of Auth0.
Additional factors that could cause actual results to differ materially from
these forward-looking statements are detailed from time to time in the reports
Okta files with the Securities and Exchange Commission, including in Okta’s
Annual Report on Form 10-K for the fiscal year ended January 31, 2021. All
forward-looking statements in this press release are based on information
available to Okta as of the date hereof, and Okta disclaims any obligation to
update these forward-looking statements.