CyberArk makes bold move with $1.54 billion acquisition of Venafi
CyberArk makes bold move with $1.54 billion acquisition of Venafi
The Israeli company is purchasing the machine identity management company from Thoma Bravo as it looks to combine Venafi’s expertise with its identity security capabilities
CyberArk said on Monday it will acquire cybersecurity firm Venafi from equity firm Thoma Bravo in a deal valued at around $1.54 billion.
The firm will acquire Venafi in a combination of $1 billion in cash and around $540 million in stock, and expects the deal to close in the second half of 2024.
CyberArk has seen its share price climb by over 60% over the past year, reaching a market cap of around $10 billion.
Venafi is expected to add around $150 million in annual recurring revenue and will be accretive to CyberArk's margins immediately, the company said. Thoma Bravo acquired Venafi for $1.15 billion in 2020.
The acquisition will combine Venafi’s machine identity management capabilities with CyberArk’s identity security capabilities with the aim of establishing a unified platform for end-to-end machine identity security at enterprise scale.
Venafi develops certificate lifecycle management, private Public Key Infrastructure (PKI), IoT identity management and cryptographic code signing, and together with CyberArk’s secrets management capabilities will enable organizations to protect against misuse and compromise of machine identities, improve security, and stop costly outages.
“This acquisition marks a pivotal milestone for CyberArk, enabling us to further our vision to secure every identity – human and machine – with the right level of privilege controls,” said Matt Cohen, Chief Executive Officer of CyberArk. “By combining forces with Venafi, we are expanding our abilities to secure machine identities in a cloud-first, GenAI, post-quantum world. Our integrated technologies, capabilities and expertise will address the needs of global enterprises and empower Chief Information Security Officers to defend against increasingly sophisticated attacks that leverage human and machine identities as part of the attack chain.”
Reuters contributed to this report
