CyberArk Chairman Udi Mokady. (Photo CyberArk)
CyberArk, one of Israel Startup Nation’s biggest successes in the cybersecurity field and now a publicly traded corporation worth more than $10 billion, entered into an agreement to acquire Venafi, a firm in the field of machine identity management, from Thoma Bravo. The deal is worth $1.4 billion – $1 billion in cash and approximately $540 million in shares.
The explosion of machine identities in cloud-based environments creates a complex challenge for security. The sheer number of machine identities – workloads, containers, applications, devices – is growing much faster than the number of human users. This vast amount of identities makes it difficult to track and manage them all.
Venafi is a cybersecurity firm in the filed of category creator of machine identity management, securing machine-to-machine connections and communications. Venafi protects machine identity types by orchestrating cryptographic keys and digital certificates for SSL/TLS, SSH, code signing, mobile and IoT. Venafi provides global visibility of machine identities and the risks associated with them for the extended enterprise—on premises, mobile, virtual, cloud and IoT—at machine speed and scale.
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Venafi is expected to add approximately $150 million annual recurring revenue (ARR).
The news comes after Cyberark hit a $10 billion plus market cap on Wall Street in February, trading on the NASDAQ, CyberArk at the time became the eighth most valuable publicly traded Israeli company, behind behemoths like Check Point Software and Mobileye.
This came after CyberArk reported that its subscription revenue was $150.3 million in the fourth quarter of 2023, an increase of 70 percent from $88.5 million in the fourth quarter of 2022. The company expects to reach $1 billion in sales in 2024.
The company’s total ARR (Annual Recurring Revenue) was $774 million in 2023 Growth of 36% Year-over-Year Subscription Revenue of $472.0 million for Full Year 2023; Growth of 68% Year-Over-Year; Record Total Revenue of $751.9 million for Full Year 2023; Growth Accelerates to 27% Year-Over-Year; Net Cash Provided by Operating Activities of $56.2 million for the Full Year 2023.
CyberArk’s service is centered on privileged access management, CyberArk provides the most comprehensive security offering for any identity – human or machine – across business applications, distributed workforces, hybrid cloud workloads and throughout the DevOps lifecycle.
Today, only CyberArk is delivering a new category of targeted security solutions that help leaders stop reacting to cyber threats and get ahead of them, preventing attack escalation before irreparable business harm is done. CyberArk is a vital security partner to more than 6,770 global businesses.
“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, 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. Venafi brings world-class talent who shares CyberArk’s customer-centric, people-first culture and a security-first mindset. We are thrilled to work with the Venafi team to capitalize on the tremendous growth opportunity in the identity security market.”
