Israel-based cybersecurity firm CyberArk is set to acquire Venafi from private equity firm Thoma Bravo for approximately $1.54 billion. The transaction will include $1 billion in cash and around $540 million in stock, with an expected closure in the latter half of 2024.
This acquisition follows Cisco Systems’ purchase of cybersecurity firm Splunk for $28 billion in September, highlighting a trend of companies bolstering their enterprise security amid rising digital threats.
CyberArk CEO Matt Cohen stated, “By combining forces with Venafi, we are expanding our abilities to secure machine identities in a cloud-first, GenAI, post-quantum world.”
Both companies’ boards have approved the deal. CyberArk, which reported a 37 percent increase in total revenue to $221.6 million and a nearly 70 percent rise in subscription revenue in the first quarter, anticipates that Venafi will contribute approximately $150 million in annual recurring revenue.
The acquisition is expected to expand CyberArk’s total addressable market by nearly $10 billion to $60 billion, thanks to Venafi’s strong presence in cloud security. Additionally, CyberArk noted that the deal would immediately boost its profit margins.
Thoma Bravo’s growth investment in Venafi in December 2020 had valued the company at $1.15 billion at that time.
