Oracle has agreed to purchase authentication specialist Passlogix.
The company specialises in single sign-on products and services for enterprise software and services.
The two companies have a long history of working together on products, and Oracle said that the acquisition will allow it to further integrate Passlogix tools into its Identity Management suite.
"Driven by regulatory mandates, organisations are being pressured to provide stronger authentication mechanisms while reducing the number of passwords required," said Oracle identity management vice president Amit Jasuja.
"With the addition of Passlogix, we expect to provide a complete enterprise-scale identity management solution and be able to provide more global reach and support resources to customers."
Forrester Research principal analyst Andras Cser told V3.co.uk that Oracle will likely have Passlogix' enterprise single sign-on (eSSO) products fully integrated with its platforms within the next 12-18 months.
"Given the simplicity and relative autonomous nature of the eSSO solution, Oracle will likely focus on eSSO integration with Oracle Access Manager and Oracle Adaptive Access Manager for fraud prevention on the desktop," said Cser.
"Oracle will also likely use the v-GO Shared Account Manager to enter the market of privileged identity management."
Oracle declined to post details of the deal for the New York-based firm. The transaction is expected to close by the end of the year.
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