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Okta says it’s buying security rival Auth0 for $6.5 billion, sending stock plunging



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Okta CEO Todd McKinnonOktaOkta, whose cloud software allows office workers to access all of their apps through a secure online service, said on Wednesday that it’s spending $6.5 billion to acquire rival Auth0.Okta’s shares plunged about 13% in extended trading after the announcement. The all-stock deal equals about 21% of Okta’s market cap as of Wednesday’s close. Okta said it expects the transaction to close by the end of July.With more large businesses counting on cloud-based applications, Okta has seen its revenue surge since its 2017 IPO. The company said in its earnings statement on Wednesday that fourth-quarter revenue jumped 40% to $234.7 million, …

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