Okta Inc. today announced plans to acquire Axiom Security Ltd., a startup with a platform for managing user access to sensitive applications.

The deal is reportedly worth $100 million. That’s about 10 times what Axiom raised from investors prior to the acquisition.

Okta announced the deal shortly before releasing its second-quarter earnings report, which sent its stock 4% higher in after-hours trading. The company’s revenue rose 13% year-over-year to $728 million, well above the $711.8 million consensus estimate. Okta’s adjusted earnings of 91 cents per share also topped expectations by a significant margin.

“Our solid Q2 results are highlighted by continued strength in new product adoption, the public sector, Auth0 and cash flow,” said Chief Executive Officer Todd McKinnon. Auth0 is a platform for managing customer access to applications that the company obtained through an earlier acquisition.

Tel Aviv-based Axiom Security provides a privileged access management, or PAM, platform of the same name. Companies use it to manage the user accounts of administrators and other workers who have access to sensitive systems. Such accounts require different, and usually stricter, cybersecurity controls than standard employee accounts.

One of Axiom Security’s flagship features is a so-called JIT, or just-in-time, access management tool. It allows companies to grant an employee access to a sensitive system only for the amount of time needed to perform a given task. Access is revoked after the task is completed, which reduces the risk posed by account breaches.

Workers can request permission to log into a system through a self-service interface. Axiom Security automatically approves low-risk access permissions while the remaining requests are routed to the cybersecurity team for review.

The company’s platform also includes a feature dubbed Break-Glass Access. It’s designed for situations where an administrator must urgently log into an important system to fix a malfunction. According to Axiom Security, the feature allows employees to bypass the usual access request process and use an expedited workflow.

Another feature of the company’s platform eases the task of managing remote server access. Administrators usually log into remote servers via two network protocols called SSH and RDP. Using Axiom Security’s platform, a company can provide its administrators with short-term SSH and RDP login credentials that expire automatically.

Okta plans to close the acquisition in September. In the subsequent months, the company will integrate Axiom Security’s software with Okta Privileged Access, its existing PAM platform. The upgrade will make it easier for organizations to manage how employees access their Kubernetes clusters and databases.

Okta expects to generate adjusted earnings of $3.33 to $3.38 per share this year on between $2.875 billion and $2.885 billion in revenue. That’s slightly higher than the company’s previous forecast. The consensus estimate projected adjusted earnings of $3.28 per and $2.86 billion in revenue.

Image: Okta