Okta to Buy Security Software Maker Auth0 for $6.5 Billion (1)

Okta Inc., a maker of identity-verification software, agreed to buy smaller rival Auth0 for about $6.5 billion in stock, seeking to solidify its position in the growing market for digital authentication security services.

The deal price for closely held Auth0 is based on an Okta share price of $276.21, and the transaction is expected to close in the quarter ending July 31, according to a statement Wednesday. Last year, Auth0 raised $120 million in a round that was led by Salesforce Ventures and valued the Seattle-area company at $1.92 billion.

Watch: Todd Mckinnon, CEO of Okta, discusses the company’s “conservative outlook” and the agreement to buy smaller rival Auth0 for about $6.5 billion.

(Source: Bloomberg)

Customers use San Francisco-based Okta’s security software to ...