A statement from One Identity said this was its first acquisition as an independent company.
It said Balabit's PAM solution would offer protection from threats posed by high-risk, privileged accounts, while its privileged account analytics solution provided additional protection by collecting and analysing data from privileged sessions to help identify anomalous activity.
Balabit's session management technology is embedded into the recently announced One Identity Safeguard solution through an OEM partnership.
The company said the acquisition also enabled it to control future development of Balabit technology and create an even more powerful solution that customers could leverage to solve critical PAM challenges.
John Milburn, president and general manager of One Identity, said the acquisition reinforced One Identity's commitment to investing in technology and the business in order to drive innovation.
"With the addition of Balabit, we ensure that we can continue to deliver best-of-breed privileged session management and privileged account analytics capabilities to our customers and partners, and do so within the context of a modern, PAM solution that combines the best of One Identity and Balabit technology.
"We're thrilled to welcome the Balabit team to One Identity, and we look forward to continue delivering the innovative technology and world-class support Balabit's customers and partners have come to expect."
Zoltan Gyorko, chief executive of Balabit, said: "We're excited to join the One Identity family and add our technology and expertise to One Identity's rapidly growing portfolio of IAM solutions.
"Balabit's customers, prospects and partners will be able to enjoy our market-leading PAM tools within the broader stack of first-class PAM and IAM solutions in the One Identity portfolio. Together with One Identity, we can create new opportunities for our customers and partners to stay ahead of dangerous internal and external security threats."
"The addition of privileged account analytics is a perfect complement to the identity analytics capabilities in our recently released One Identity Starling IARI solution," said Jackson Shaw, senior director of product management at One Identity.
"The pairing of our technologies will enable our customers to know what entitlements their employees and privileged users have, and what they are doing with those entitlements. Identity and privileged account analytics – it's a powerful combination that we're excited to bring to market."