Okta CEO Todd McKinnon on Friday defended his company’s move to acquire Auth0, calling the rival company a complementary asset to its identity and access management business.
Okta shares are down 10% since it announced the $6.5 billion all-stock transaction after Wednesday’s close. The sales figure represents more than a fifth of Okta’s market cap and a premium to the $1.92 billion valuation Auth0 received after a funding round last summer.
“This is a company that’s on a path to go public and, as you know, public markets value public companies a certain way,” McKinnon told CNBC’s Jim Cramer.
He appeared on “Mad Money” alongside Eugenio Pace, the chief executive of Auth0.
“If you look at how…