Okta acquired Auth0 for approximately $6.5 billion announced (all stock); final acquisition-date fair value of $5,671.0 million — $5,175.6M common stock issued (~19.2M shares), $257.0M cash, $238.4M assumed employee equity awards, a transaction completed in May 2021, structured as primarily stock (with $257M cash component).
Auth0 operates in Customer Identity / Identity-as-a-Service, is based in Bellevue / Seattle, Washington (with international offices in Buenos Aires, London, Sydney, and Tokyo), had revenue of about $139.7 million revenue contribution from May 3, 2021 through January 31, 2022 (post-close stub period). Auth0 was an Identity-as-a-Service company built developer-first — an API-driven customer identity platform that became the de facto choice for application teams. Okta acquired all outstanding shares; Auth0 operates as an independent business unit inside Okta, led by Auth0 CEO and co-founder Eugenio Pace reporting directly to Todd McKinnon. The acquisition recorded $5,290.1M of goodwill primarily attributable to expected synergies across complementary products, customers and geographies. Intangibles: $172M developed technology, $140.9M customer relationships, $21.4M trade name.
Combining Auth0's developer-centric identity solution with the Okta Identity Cloud will drive tremendous value for both current and future customers. In an increasingly digital world, identity is the unifying means by which we use technology — both at work and in our personal lives.
Auth0 owned the developer mindshare and customer-identity API category that Okta had been trying to crack since the Stormpath acquihire four years earlier. Buying it eliminated Okta's most credible CIAM competitor in a single transaction, even at a price equivalent to roughly 50x trailing revenue. Expected synergies across complementary products, customers and geographies, cross-selling opportunities, and improvements in the selling process — $5.29B of goodwill recorded against those expectations. Auth0 operates as an independent business unit within Okta, led by Auth0 CEO Eugenio Pace reporting directly to Todd McKinnon. Both platforms (Okta Identity Cloud and Auth0) supported, invested in, and integrated over time. Todd McKinnon, Q4 FY21 earnings call (March 3, 2021, announcement day): introduced the deal alongside incoming CFO Mike Corey and Eugenio Pace, framing it as 'our plan to join forces' rather than an integration play — language that has held through five fiscal years and is reiterated in the FY26 10-K's dual-platform product description.
Combining Auth0's developer-centric identity solution with the Okta Identity Cloud will drive tremendous value for both current and future customers. In an increasingly digital world, identity is the unifying means by which we use technology — both at work and in our personal lives. With so much at stake for businesses today, it's critical that we deliver trusted customer-facing identity solutions. Okta's and Auth0's shared vision for the identity market, rooted in customer success, will accelerate our innovation, opening up new ways for our customers to leverage identity to meet their business needs.Todd McKinnon, Chief Executive Officer and co-founder, Okta
Okta and Auth0 have an incredible opportunity to build the identity platform of the future. We founded Auth0 to enable product builders to innovate with a secure, easy-to-use, and extensible customer identity platform. Together, we can offer our customers workforce and customer identity solutions with exceptional speed, simplicity, security, reliability and scalability.Eugenio Pace, Chief Executive Officer and co-founder, Auth0
Advisory firms were not disclosed for this transaction.