Benzinga | Mar 4, 2021 07:37AM EST

Okta Set To Acquire Identity Platform Auth0 For $6.5B

* Okta Inc (NASDAQ: OKTA) inked an agreement to acquire an identity platform for application teams, Auth0, in a stock transaction worth $6.5 billion.

* Okta and Auth0 will address a broad set of identity use cases and ensure safer usage of any technology under the arrangement.

* The transaction will fast-track Okta's growth in the $55 billion identity market. Auth0 will function as an independent business unit inside of Okta. Consequently, organizations will have greater choices in selecting the identity solution for their unique needs.

* Okta's and Auth0's joint vision for the identity market will fast-track innovation, enabling customers to leverage identity to accomplish their business needs in the increasingly digitalized world as per Okta CEO Todd McKinnon.

* Okta's cash and cash equivalents amounted to $2.56 billion as of January 31, 2021.

* Price action: OKTA stock was lower by 10.8% at $215.24 in the pre-market session on the last check Thursday.