UPDATED 10:59 EDT / FEBRUARY 24 2015

NEWS

Good buy: Cloud comms company Twilio acquires 2FA startup Authy

authyCloud communications company Twilio Inc. has acquired Authy Inc., a provider of two-factor authentication (2FA) for large-scale web and mobile applications. The price of the acquisition was not disclosed.

Founded in 2012, Authy claims that it is the simplest way to add two-factor authentication to any website or app. Authy provides a simple API for developers to customize the user experience when they add two-factor authentication as well as multiple addons for common applications such as websites, mobile, and SaaS applications by developers.

Over 6,000 websites are using Authy’s API, including Bitcoin exchange Coinbase, MercadoLibre and CloudFlare.

It’s claimed that the two companies combined are paving the way for broad adoption of enhanced authentication in all applications.

“We’ve seen increased demand from Twilio customers for easy-to-implement, strong authentication options for mobile and Web apps,” CEO of Twilo Jeff Lawson said in a email sent to SiliconANGLE. “With Authy’s deep identity expertise and product capabilities, combined with Twilio’s global reach, we make it easy for customers to secure their applications and customer information. We are thrilled to welcome the Authy team to the Twilio family. We can’t wait to see what our customers build.”

“The combination of Twilio and Authy is a win-win for everyone. Together we will accelerate customer adoption in three critical areas,” founder and CEO of Authy Daniel Palacio added. “First, the combination of our SaaS services allows Authy to better serve our customers via Twilio’s infrastructure and support services. Second, joining Twilio means our team can focus on what we do best — enhancing our strong authentication services and building great new identity products. Lastly, Twilio’s global communications infrastructure paves the way for increased adoption of Authy 2FA to users worldwide — this allows us to stay true to our mission of providing not only the strongest, but also the most user-friendly, strong authentication solution available.”

Based in San Francisco, Authy had raised $3.8 million prior to acquisition over two rounds that included Corazon Capital, AngelList, Salesforce, Data Collective, Cyrptocurreny Partners, StartCaps Ventures, Salesforce Ventures, Y Combinator and others.

Twilio itself is on a roll, and as we reported February 20th it’s preparing for an IPO, but is taking its time in doing so. There are so many startups out there that promise the world but fail to deliver, but as we said in that earlier article that when Twilio says that it’s “reinventing telecom by merging the worlds of cloud computing, web services and telecommunications” it’s actually a highly accurate description.

This new acquisition is a good compliment for Twilio and will bide it well going forward to an eventual IPO.


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