Okta Acquires Permiso to Bolster AI Identity Security

Okta has agreed to acquire Permiso, a startup specializing in AI identity security, in a deal valued at around $200 million. The acquisition aims to strengthen Okta's push into securing AI agents and other non-human identities.

Identity Management Evolution

The deal comes as identity management companies seek to expand beyond verifying users at login to continuously monitoring what users, applications, and AI agents do once gaining authorized access to a network environment. This shift has intensified competition to secure machine identities as enterprises embed AI deeper into everyday operations.

Permiso's Expertise

Permiso, which emerged from stealth in 2022, develops software that helps security teams spot suspicious activity in cloud environments after users or applications have been granted access. The startup has expanded its platform to monitor AI agents and other machine identities, specializing in detecting attacks that use stolen or compromised identities to move through cloud infrastructure.

Acquisition Terms

The deal is expected to close in the third quarter of Okta's fiscal 2027, subject to customary closing conditions. Okta did not disclose the terms of the transaction, but a source with knowledge of the deal valued it at just under $200 million. A spokesperson for Okta confirmed the acquisition without disputing the $200 million figure.

Impact on AI Identity Security

The deal strengthens Okta's push into securing AI agents and other non-human identities alongside its core identity management business. "Permiso will extend Okta's identity security fabric with proven identity threat detection and response capabilities, and an incredible threat research and security team that will advance Okta's threat detection and prevention capabilities," Okta's chief product officer Ely Kahn said in a prepared statement.

Permiso's Funding History

Permiso has raised about $29 million to date, including an $18.5 million Series A round in April 2024 led by Altimeter Capital. People familiar with the financing said the Series A valued the Palo Alto-based startup at about $80 million on a post-money basis.