CyberArk to strengthen identity security with acquisition of Venafi

CyberArk will be acquiring 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.

The deal is expected to close in the second half of 2024.

Notably, Thoma Bravo acquired Venafi for $1.15 billion in 2020.

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. 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.

“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.”