Okta acquired Stormpath for approximately $3.7 million in equity consideration (200,000 shares + replacement awards) plus an incremental 800,000 restricted shares ($8.6M) recognized as post-combination compensation, a transaction completed in February 2017, structured as stock + assumed equity. The deal was a Asset purchase (acquihire + IP license).
Stormpath operates in Customer Identity / developer identity, is based in San Mateo, California. Stormpath built a user management and authentication service for software development teams, with a focus on identity APIs for app developers. Okta acquired the rights to hire certain employees (35 of 45) plus a non-exclusive intellectual property license; Stormpath wound down its standalone API and SDKs on August 17, 2017. Headquartered in San Mateo, California.
Stormpath focused on identity for the developer. The integration of Stormpath into Okta accelerates the growth of our identity platform for developers.
Stormpath's API-first design and developer mindshare were the missing piece in Okta's customer-identity stack — the same developer audience Auth0 would build into a $6.5B exit four years later. Native developer authentication inside the Okta Identity Cloud, accelerating the company's push beyond workforce identity into customer/developer identity. Engineering team absorbed into Okta's developer experience and customer identity organization; Stormpath APIs sunset on August 17, 2017 Todd McKinnon, Q1 FY18 earnings call (June 7, 2017): 'As we look to further build on our capabilities for external users, we added the team from Stormpath in March. Stormpath focused on identity for the developer. The integration of Stormpath into Okta accelerates the growth of our identity platform for developers.'
Our vision for the Okta Identity Cloud is to become the authentication layer for every app, service, device and person. The Stormpath team brings great technical talent and a deep understanding of developer needs, both of which are necessary to provide a world-class developer experience.Todd McKinnon, Chief Executive Officer and co-founder, Okta
Our team is excited to join Okta and accelerate efforts to help companies better manage identity across a wide spectrum of applications and services.Alex Salazar, co-founder, Stormpath
Advisory firms were not disclosed for this transaction.