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Information security giant CyberArk has announced the acquisition of cyber security firm Venafi in a US$1.54 billion (A$2.3 billion) deal with Thoma Bravo.
With the acquisition, the Israel-founded and US-based security company is looking to bolster its machine-to-machine (M2M) security.
“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 in a statement.
“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 is considered an expert in public key infrastructure (PKI) security and focuses on ensuring the flow of data between devices is secure and authorised at every step.
“Digital transformation and ongoing cloud migration have led to an exponential increase in the number of machine identities, such as workloads, code, applications, IoT devices and containers,” CyberArk said in its statement.
“The number of machines is rapidly outpacing the growth in their human counterparts, with more than 40 machine identities for every human identity. Left unprotected, they serve as a lucrative hunting ground for cyber criminals.”
CyberArk will pay Thoma Bravo, which has majority ownership in Venafi, US$1 billion in cash and roughly US$540 million in shares. The deal is expected to close in the second half of this year.
This also marks a major jump in Venafi’s valuation, which was previously US$1.15 billion when valued in December 2020 when Thoma Bravo made a growth investment in the company.
With the deal, thanks to Venafi’s strong cloud security, CyberArk said its total addressable market will be increased from almost US$10 billion to US$60 billion.
It also expects Venafi to bolster its annual recurring revenue by US$150 million, a massive number considering Cyber Ark reported US$221.6 million in total revenue and a 70 per cent increase in subscription revenue in the first quarter.
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