RTTNews | Mar 4, 2021 06:54AM EST

06:53 Thursday, March 4, 2021 (RTTNews.com) - Shares of identity and access management company Okta, Inc. (OKTA) are down more than 10% in the pre-market trading on Thursday.

Wednesday, Okta announced its decision to buy Auth0, a cloud identity platform, for about $6.5 billion in stock.

"Combining Auth0's developer-centric identity solution with the Okta Identity Cloud will drive tremendous value for both current and future customers," said Todd McKinnon, Chief Executive Officer and co-founder, Okta.

Okto said that Auth0 will operate as an independent business unit inside of Okta, and both platforms will be integrated over time.

The company said the deal will accelerate its growth in the $55 billion identity market.

The all-stock transaction, based on Okta share price of $276.21 per share is expected to close in the second quarter ending July 31, 2021.

Separately, Wednesday after the market close, Okta announced fourth quarter results.

The company reported net loss of$75.8 million or $0.58 per share compared with net loss of $50.5 million or $0.42 per share in the same quarter a year ago.

Excluding items, adjusted earnings of $0.06 per share beat the average estimate of analysts polled by Thomson Reuters at $0.01 loss per share. Analysts' estimates typically exclude special items.

Revenue for the quarter increased 40% year-over-year to $234.7 million.

OKTA closed Wednesday's regular trading at $241.22, down 6.89%.

Read the original article on RTTNews ( https://www.rttnews.com/3174911/stock-alert-okta-declines-10-in-pre-market.aspx)

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2021 RTTNews.com All Rights Reserved