Okta on Thursday agreed to acquire Permiso Security, an AI identity security startup, in a deal valued at just under $200 million, according to a source familiar with the transaction. The acquisition, structured as an almost all-cash deal, signals Okta’s bet that demand for protecting AI agents and other machine identities will accelerate as enterprises deploy autonomous software across their operations.
Okta did not disclose the terms publicly. A spokesperson for the identity management company declined to comment on specifics when asked by TechCrunch but did not dispute the reported figure. The deal is expected to close in the third quarter of Okta’s fiscal 2027, subject to customary closing conditions.
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Why identity management companies are shifting focus
Okta’s move to buy Permiso comes as identity management companies seek to expand beyond verifying users at login. The industry is increasingly focused on continuously monitoring what users, applications, and AI agents do once they gain authorized access to a network environment. This 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. More recently, the startup expanded its platform to monitor AI agents and other machine identities.
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Permiso’s technology and team
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, the startup introduced SandyClaw, a platform designed to analyze AI agent skills in a sandboxed environment to identify malicious behavior before they are deployed.
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.
Okta’s chief product officer Ely Kahn said in a prepared statement: “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.”
What the deal means for enterprise security
The acquisition strengthens Okta’s push into securing AI agents and other non-human identities alongside its core identity management business. As organizations deploy more autonomous software agents that operate without direct human supervision, the ability to monitor their behavior and detect anomalous activity becomes critical.
The deal also brings Permiso’s threat research team into Okta, potentially accelerating the company’s ability to identify and respond to emerging attack patterns that target machine identities. Industry analysts have noted that the rise of AI agents creates new attack surfaces that traditional identity security tools were not designed to address.
Okta’s acquisition of Permiso follows a broader trend of identity and security vendors acquiring AI-focused startups to fill gaps in their product portfolios. The deal is expected to close in the third quarter of Okta’s fiscal 2027, pending regulatory approval and other customary conditions.
