Okta acquires AI security startup Permiso for about $200M

Okta on Thursday announced the acquisition of AI identity security startup Permiso Security, betting that demand for protecting AI agents and other machine identities will grow as enterprises deploy autonomous software across their operations.

The identity management company did not disclose the terms of the transaction, but TechCrunch learned that the acquisition is valued at just under $200 million and structured as an almost all-cash deal, according to a source with knowledge of the deal. When asked by TechCrunch, an Okta spokesperson did not dispute the figure but would not comment on specifics.

Okta said the deal is expected to close in the third quarter of its fiscal 2027, subject to customary closing conditions. The move comes as identity management firms seek to expand beyond verifying users at login to continuously monitoring what users, applications, and AI agents do after gaining authorized access. That shift has intensified competition to secure machine identities as enterprises embed AI deeper into everyday operations.

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 recently expanded its platform to monitor AI agents and other machine identities. Co-founded by former FireEye executives Paul Nguyen and Jason Martin, Permiso specializes in detecting attacks that use stolen or compromised identities to move through cloud infrastructure.

In April, Permiso also introduced SandyClaw, a platform designed to analyze AI agent skills in a sandboxed environment to identify malicious behavior before deployment. 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 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.