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Quest Software’s One Identity Acquires OneLogin; MSPs Gain Cloud IAM Option

One Identity has acquired OneLogin. The combined company will offer MSP partners such capabilities as identity access management (IAM), privileged access management (PAM), identity governance and administration (IGA), and Microsoft Active Directory management and security (ADMS) solutions. Financial terms of the deal were not disclosed.

This is technology M&A deal number 617 that ChannelE2E has covered so far in 2021. See all technology M&A deals for 2021 and 2020 listed here.

In this deal, both companies have large installed bases. One Identity, owned by Quest Software, manages more than 250 million identities for 5,000 organizations, whilst OneLogin manages over 40 million identities for 5,500 customers.

OneLogin was backed by venture capital investors ahead of the deal. The company raised $100 million in growth financing in 2019. Key financial backers included Blue Cloud Ventures, CRV, Greenspring Associates, Scale Venture Partners, and Silver Lake.

In terms of headcount, One Identity and OneLogin have 479 and 280 employees, respectively, listed on LinkedIn.

One Identity Buys OneLogin: MSP Focus, Market Growth and Competition

OneLogin emphasizes that its cloud-based platform is "made for MSPs." Among the proof points: The software has a multi-tenancy design, supports self-service password resets, and helps MSPs to automatically provision users and apps, the company says. Moreover, the software integrates with MSP-centric software platforms such as ConnectWise, Datto Autotask, Kaseya, and Cisco Meraki and Duo.

Meanwhile, One Identity has 11,000 partners and promotes MSP capabilities through the Quest Managed Service Provider Partner Program.

Demand for IAM solutions appears strong. Indeed, the global IAM market will reach $24.1 billion by 2025, up from $12.3 billion in 2020. That's a 14.5% compound annual growth rate (CAGR), according to Markets and Markets.

Still, One Identity and OneLogin face intense competition from such IAM providers as Auto0, ForgeRock, Microsoft, Okta, Ping Identity, CyberArk Idaptive and many other options. Also, directory-as-a-service companies such as JumpCloud provide further competition on some fronts.

One Identity Buys OneLogin: IAM Solutions and Product Portfolio

MSPs that work with One Identity can now leverage for types of access management options:

  1. Privileged Access Management (PAM): One Identity Safeguard gives organizations a secure way to store, manage, authenticate, record, audit and analyze privileged access, the company says.
  2. Identity Governance and Administration (IGA): One Identity Manager governs identities and access for on-premises, hybrid and cloud environments to address audit and compliance initiatives, and to provide management with a view of internal, external and privileged accounts, the company asserts.
  3. Microsoft Active Directory Management and Security: One Identity Active Roles deploys AD account management capabilities, such as provisioning, group and roles management, password management, and governance, the company says.
  4. Identity & Access Management (IAM): OneLogin’s cloud-first IAM solution allows customers to secure their workforce, partners, and customers the buyer says.

One Identity Acquires OneLogin: Executive Perspectives

Brad Brooks, OneLogin
Brad Brooks, CEO, OneLogin
Bhagwat Swaroop, One Identity

In a prepared statement about the deal, Bhagwat Swaroop, president and general manager of One Identity, said:

“With the proliferation of human and machine identities, the race to the cloud and the rise of remote working, identity is quickly becoming the new edge – and protecting identity in an end-to-end manner has never been more important. By adding OneLogin to our portfolio, and incorporating it into our cloud-first Unified Identity Security Platform, we can help customers holistically correlate all identities, verify everything before granting access to critical assets and provide real-time visibility into suspicious login activity. With identity at the core, customers can now implement an adaptive zero trust strategy and dramatically improve their overall cybersecurity posture.”

Added Brad Brooks, CEO of OneLogin:

“Joining One Identity provides us with the ability to further accelerate our growth and provide additional value for both of our customers. With OneLogin’s robust unified platform for both workforce and CIAM, combining forces with One Identity’s suite of products including their PAM solution, will allow new and existing customers, on a global scale, to tap into the market’s only unified identity security platform.”

ChannelE2E is checking to see how much MSP partner and product overlap One Identity and OneLogin had ahead of the deal.

One Identity Parent Quest Software: Business Background

Private equity firms Francisco Partners and Elliott Management acquired Quest Software from Dell Technologies in 2016.

Quest Software since that time has overhauled its executive team and acquired multiple companies -- including Microsoft 365 migration specialist Binary Tree, and data governance company Erwin.

Joe Panettieri

Joe Panettieri is co-founder & editorial director of MSSP Alert and ChannelE2E, the two leading news & analysis sites for managed service providers in the cybersecurity market.