Founded out of San Francisco in 2009, OneLogin markets a slew of identity products spanning single sign-on, multi-factor authentication (MFA), user provisioning, and more. The company had raised some $175 million since its inception and claimed a number of big-name customers, including Airbus.
One Identity’s path has been somewhat circuitous. Parent Quest Software launched in 1987, and Dell acquired the Aliso Viejo, California-based company for $2.4 billion in 2012, with a view to extending Dell’s enterprise software focus into systems management, security, data protection, and more. One Identity was among these products. Dell sold its software business four years later to Francisco Partners and Elliott Management, and One Identity was spun out as its own independent brand in 2017.
One Identity offers identity-focused security products that range from privileged access management (PAM) to endpoint privilege management (EPM), identity governance and administration (IGA), log management, active directory management and security (ADMS), and more. Although One Identity already touts its IAM capabilities, bolstering its identity smarts with OneLogin’s established cloud-native IAM offering will help One Identity sell itself as a holistic solution to identity security, spanning PAM, IGA, ADMS, and IAM.
The acquisition follows a flurry of activity in the IAM space, with Okta recently completing its $6.5 billion Auth0 acquisition and Ping Identity snapping up no-code identity and security orchestration platform Singular Key last week. Throw into the mix a slew of a VC investments in the burgeoning identity management space, and the appetite for technology that can safeguard employees’ and customers’ digital data is evident.
The global IAM market was worth $12.3 billion in 2020, according to some reports, and it’s predicted to roughly double in size within four years. With businesses across the spectrum increasing their cloud IT spend as part of ongoing digital transformation efforts and remote work emerging as the new norm, the need to invest in security is growing. For enterprises, managing the online identities of their workforce is a key part of this transition.
“With the proliferation of human and machine identities, the race to the cloud, and the rise of remote working, identity is quickly becoming the new edge — and protecting identity in an end-to-end manner has never been more important,” One Identity president and general manager Bhagwat Swaroop said in a press release. “By adding OneLogin to our portfolio and incorporating it into our cloud-first unified identity security platform, we can help customers holistically correlate all identities, verify everything before granting access to critical assets, and provide real-time visibility into suspicious login activity.”
While terms of the deal were not disclosed, a Moody’s report from last month indicated Seahawk Holdings Limited, a business entity representing Francisco Partners and an Elliot Management affiliate, was planning to “raise a $330 million fungible add-on” to support the OneLogin acquisition. However, it’s not clear if those funds were for the entirety of the transaction or were part of a larger deal constituting funds from elsewhere.
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