Okta acquires ScaleFT

Okta acquired ScaleFT for approximately $15.6 million cash (net of $0.6 million cash acquired), a transaction completed in July 2018, structured as all cash.

ScaleFT operates in Workforce Identity / Zero Trust, is based in San Francisco, California. ScaleFT was a Zero Trust security company providing access solutions for the modern workforce — continuous authentication for server access across cloud and on-premises infrastructure including AWS, SSH and RDP. Okta recorded $4.6M in developed-technology intangibles and $11.8M of goodwill, primarily attributable to the assembled workforce and technology integration.

To help our customers increase security while also meeting the demands of the modern workforce, we're acquiring ScaleFT to further our contextual access management vision — and ensure the right people get access to the right resources for the shortest amount of time.

ScaleFT extended Okta beyond SaaS sign-on into infrastructure access — a category (zero-trust server access) where Okta otherwise had no native product against incumbents like CyberArk and BeyondTrust. Direct integration with the Okta Identity Cloud's contextual access policies; combined product became Okta Advanced Server Access. ScaleFT engineering joined Okta; CTO Paul Querna led strategy and execution of Okta's Zero Trust architecture; CSO Marc Rogers became Okta's Executive Director of Cybersecurity Strategy Todd McKinnon, Q2 FY19 earnings call (September 6, 2018): 'I wanted to briefly comment on our acquisition of ScaleFT. We were excited to announce the acquisition in the quarter, which will help our capabilities. Zero trust and contextual access are the next essential features in a secure IT environment, and we will be better equipped to deliver these capabilities with the technology from ScaleFT.'