A very big new acquisition has happened in the tech industry, with Okta (NASDAQ: OKTA), the publicly-traded cloud identity and access management software provider, announcing an agreement to buy Auth0, a fellow cloud identity software provider, for a price of $6.5 billion to be paid all with shares.
A $6.5 billion exit for Auth0 marks a major win for the startup scene in Seattle, the tech hub where Auth0 is based and also a major win for the company's backers and investors. Auth0 last raised venture funding last year in July with a $120 million Series F round that valued the company at $1.9 billion. Now, it's about to sell for more than triple that amount.
- Auth0 has raised more than $330 million in total venture funding, with investors including the likes of Salesforce Ventures, Bessemer Venture Partners, Telstra Ventures, Sapphire Ventures, and DTCP. Salesforce Ventures led Auth0's most recent $120 million Series F round.
- With its acquisition of a fellow cloud identity and authentication software provider, Okta is aiming to strengthen its presence in the cloud identity market, one that's estimated to be worth $55 billion.
- Auth0 currently has an annual run rate of over $200 million.
- The boards of both companies have approved Okta's Auth0 acquisition agreement. A final sale is expected to be completed in Okta’s second quarter of fiscal year 2022, which is the quarter ending July 31, 2021.
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