CyberArk to Acquire Venafi in $1.54bn Deal

Identity security company CyberArk has signed a definitive agreement to acquire machine identity management company Venafi. CyberArk announced the deal in a May 20, 2024, NASDAQ filing.
The filing says the acquisition will combine Venafi’s machine identity management capabilities with CyberArk’s identity security capabilities to establish a unified platform for end-to-end machine identity security at enterprise scalefiling.
“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 CyberArk CEO Matt Cohen.
He says the combination of Venafi’s certificate lifecycle management, private Public Key Infrastructure (PKI), IoT identity management and cryptographic code signing, with CyberArk’s secrets management capabilities, will enable organisations to protect against misuse and compromise of machine identities, vastly improve security, and stop costly outages.
“By combining forces with Venafi, we are expanding our abilities to secure machine identities in a cloud-first, GenAI, post-quantum world,” added Cohen. “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.”
CyberArk intends to acquire Venafi for an enterprise value of approximately USD1.54 billion (approximately USD1 billion in cash and approximately USD540 million in shares). The Boards of Directors of both CyberArk and Venafi have each approved the transaction.
The transaction is expected to close in the second half of 2024, subject to required regulatory approvals, clearances and other customary closing conditions. Other details include:
  • Venafi is expected to add approximately USD150 million in annual recurring revenue.
  • Venafi brings a strong business model with 95% recurring revenue, including SaaS and Term-Based License Revenue.
  • The transaction is expected to be accretive to margins immediately, with significant revenue synergies through cross-sell, up-sell and geographic expansion.
  • Venafi brings complementary capabilities to protect machine identities and expands the Total Addressable Market from USD50 billion to USD60 billion.

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