CyberArk acquires Venafi in a $1.5 billion deal
- CyberArk, a publicly traded information security company, is acquiring Venafi, a cybersecurity specialist, in a $1.5 billion deal.
- The acquisition involves a combination of cash and stock and is expected to close in the second half of 2024.
- This strategic move enhances CyberArk's presence in machine-to-machine security through Venafi's expertise in machine identity.
Consolidation is happening in cybersecurity. Big companies are buying startups to help them deal with more cyber attacks as businesses use the cloud more. Shareholders of both companies agreed to the deal, which should be final in the second half of 2024. This means that Venafi's selling price today is a bit higher than in 2020. CyberArk is interested in Venafi because security teams need to understand threats better as technology grows. The market is complex due to mobile tech, cloud services, and remote work. There are now 40 "machines" for every person on a business network. This has led to more business for companies focusing on identity security. Some startups like Oasis Security and Silverfort have raised a lot of money. Venafi specializes in PKI and certificate management. CyberArk believes this deal will increase its market value by $10 billion to $60 billion. The CEO of CyberArk, Matt Cohen, sees this acquisition as a big step in securing all identities, human and machine, with the right controls. Cybersecurity companies are consolidating. Some companies that got high valuations years ago are now struggling to grow or make profits. They are looking for ways out, sometimes selling for much less than before. For example, Akamai bought Noname Security for $450 million, less than its last value. Wiz tried to buy Lacework for $150 million, far below its $8.3 billion valuation. Wiz raised $1 billion recently for more acquisitions. CyberArk, valued at over $10 billion, is also part of this trend. CyberArk is buying Venafi for $1.54 billion. CyberArk will pay $1 billion in cash and $540 million in shares. The deal is expected to close in the second half of 2024. This acquisition will add about $150 million in yearly revenue for CyberArk. Thoma Bravo, a private equity firm, invested in Venafi in 2020, valuing it at $1.15 billion. This deal will help CyberArk secure machine identities better in a cloud-first world. The boards of both companies have approved the deal. CyberArk's revenue grew by 37% to $221.6 million in the first quarter. The company expects Venafi to boost its revenue by $150 million annually. This deal will expand CyberArk's market by $10 billion to $60 billion. Thoma Bravo invested in Venafi in 2020, valuing it at $1.15 billion.