Okta CEO Todd McKinnon on Friday defended his firm’s transfer to amass Auth0, calling the rival firm a complementary asset to its identification and entry administration enterprise.Okta shares are down 10% because it introduced the $6.5 billion all-stock transaction after Wednesday’s shut. The gross sales determine represents greater than a fifth of Okta’s market cap and a premium to the $1.92 billion valuation Auth0 acquired after a funding spherical final summer time.”This is an organization that is on a path to go public and, as you recognize, public markets worth public corporations a sure approach,” McKinnon instructed CNBC’s Jim Cramer.He appeared on “Mad Money” alongside Eugenio Pace, the chief government of Auth0.”If you take a look at how we’re valuing it, it is development accretive to us,” McKinnon added. “We truly paid a a number of on income that is barely under ours, however in the identical ballpark.”Auth0 is an identification administration platform for app builders based mostly in Bellevue, Washington. It competes with Okta, a $28 billion cybersecurity outfit based mostly in San Francisco. Okta offers safety instruments to authenticate customers, akin to password authorizations, accessing on-line networks.Auth0 will function as an unbiased arm inside Okta when the transaction closes on the finish of July.When requested about the necessity to purchase one other identification vendor when Okta already has its personal choices, McKinnon mentioned the tie-up would give his firm a greater option to go after the shopper identification and entry administration.He defined that the $30 billion workforce identification market makes up 75% of Okta’s income, whereas $25 billion buyer identification market accounts for 25% of income. Okta focuses extra on pre-built, pre-configured options whereas Auth0 is extra targeted on purpose-built app builders, he added.Auth0 is “a product that is rather more versatile and extensible and does precisely right down to the bit and chew what the developer must do, and that is why the 2 options collectively are so compelling,” McKinnon mentioned. “They give prospects nice selection and nice flexibility and nice worth and actually solidify that $25 billion [total addressable market].”Shares of Okta fell 4.54% to $215.96 Friday. The firm on Wednesday reported fourth-quarter revenues of $234.7 million, a 40% enhance from a yr in the past. It confirmed a internet lack of $75.8 million, down from a lack of $50.5 million within the year-ago quarter.