Okta agreed Thursday to acquire AI identity security startup Permiso Security, confident that demand for AI agents and other machine identity protection will grow as enterprises deploy autonomous software across their operations.
The identity management company did not disclose terms of the deal. However, TechCrunch has learned that the acquisition is valued at less than $200 million and consists of an almost all-cash deal, according to sources with knowledge of the deal. An Okta spokesperson did not dispute these figures when asked by TechCrunch, but declined to comment on specific terms of the deal.
The transaction is expected to close in the third quarter of fiscal 2027, subject to customary closing conditions.
Okta’s move to acquire Permiso follows the identity management company’s efforts to expand beyond verifying users at login to continuously monitoring what users, applications, and AI agents do once they gain authorized access to a network environment. These changes have intensified the competition for machine identities as companies embed AI deeper into their daily operations.
Permiso, which emerged stealthily in 2022, develops software that helps security teams spot suspicious activity in cloud environments after a user or application has been granted access. Recently, the startup expanded its platform to monitor AI agents and other machine identities.
Permiso, co-founded by former FireEye executives Paul Nguyen and Jason Martin, specializes in detecting attacks that traverse cloud infrastructure using stolen or compromised identities. Last April, the startup also launched SandyClaw, a platform designed to analyze AI agent technology in a sandbox environment to identify malicious behavior before it is deployed.
This transaction strengthens Okta’s efforts to protect AI agents and other non-human identities along with its core identity management business.
“Permiso will expand Okta’s identity security fabric with proven identity threat detection and response capabilities and an incredible threat research and security team that will enhance Okta’s threat detection and prevention capabilities,” Ely Kahn, Okta’s chief product officer, said in a prepared statement.
Permiso has raised approximately $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 values the Palo Alto-based startup at about $80 million on a post-money basis.
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