Okta has acquired Israeli cybersecurity startup Axiom in a deal valued at about US$100 million.

The agreement will see Axiom’s team join Okta’s existing Israel-based development center, which was set up after Okta acquired Spera in December 2023.

Axiom, founded in 2021 by Itay Mesika and Ilan Dardik, develops cloud-focused permissions and access management software for enterprise clients.

The company has raised US$10 million since its founding, including a US$7 million seed round in December 2022 led by S Capital, and serves clients such as Minute Media, Navan, BPP, Varonis, and Orca Security.

🔗 Source: Calcalist

🧠 Food for thought

1️⃣ Okta doubles down on Israeli talent through strategic acquisitions

This acquisition represents Okta’s deliberate strategy to build a significant research and development presence in Israel’s cybersecurity ecosystem.

Just eight months after acquiring Spera Security for an estimated $100-130 million in December 2023, Okta has now purchased Axiom for approximately $100 million1.

Both Israeli startups are being integrated into the same Israel-based development center, with employees from both companies joining Okta’s expanding local operations.

This suggests Okta views Israeli cybersecurity expertise as a critical competitive advantage worth substantial investment.

The consistent $100+ million price points for these acquisitions indicate Okta is willing to pay premium valuations to secure top-tier talent and technology from Israel’s mature cybersecurity sector.

2️⃣ Identity management drives premium valuations in cybersecurity M&A

Axiom’s $100 million valuation after raising only $10 million reflects the strategic importance of identity and access management solutions in today’s threat landscape.

This represents a 10x return on invested capital, highlighting how identity-focused cybersecurity startups command premium acquisition multiples compared to other tech sectors.

Okta’s emphasis that 80% of enterprise attacks involve compromised credentials highlights why companies are willing to pay substantial premiums for identity security capabilities2.