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CyberArk Acquires Venafi for $1.54B, Machine Security

CyberArk, a prominent Israeli security firm, acquiring Venafi, a specialist in machine identity, in a deal $1.54 billion
May 20, 2024

The cybersecurity landscape is witnessing a wave of consolidation as larger players in the field seize opportunities to fortify their defenses against the ever-evolving threats targeting enterprises, particularly as businesses increasingly transition their operations to the cloud. In the latest move, CyberArk, a prominent cybersecurity firm hailing from Israel, has announced its acquisition of Venafi, a specialist in machine identity, for a hefty sum of $1.54 billion.

This strategic acquisition, comprising $1 billion in cash and approximately $540 million in shares, marks a significant development in the cybersecurity realm. With approval from shareholders on both ends, the deal is anticipated to finalize in the latter half of 2024.

Venafi, previously majority-owned by Thoma Bravo and valued at $1.15 billion in 2020, has garnered attention for its prowess in PKI and certificate management. Its technology focuses on securing and facilitating the flow of data between computing endpoints, addressing the complex challenges posed by the proliferation of mobile devices, cloud services, and distributed work environments.

CyberArk's interest in Venafi underscores the growing demand for comprehensive identity security solutions in today's dynamic threat landscape. As organizations grapple with the complexities of securing human and machine identities, CyberArk envisions this acquisition as a pivotal step towards bolstering its capabilities in a cloud-first, GenAI, and post-quantum world.

Matt Cohen, CEO of CyberArk, emphasized the strategic significance of the acquisition, envisioning a future where every identity—human and machine—is safeguarded with the appropriate level of privilege controls. The integration of Venafi's technologies into CyberArk's arsenal is poised to empower Chief Information Security Officers (CISOs) to defend against increasingly sophisticated attacks leveraging both human and machine identities.

Beyond the CyberArk-Venafi deal, the cybersecurity sector is witnessing broader trends of consolidation. While some companies face valuation pressures due to challenges in growth or profitability, others are experiencing robust growth and positioning themselves as consolidators. Notable examples include Wiz, which recently raised $1 billion to fuel an acquisition spree, and CyberArk, with a market cap exceeding $10 billion.

As the cybersecurity landscape continues to evolve, the consolidation trend extends even to the acquired companies themselves. Venafi's acquisition of Jetstack in 2020 and CyberArk's acquisition of Idaptive exemplify this trend, underscoring the strategic maneuvers shaping the future of cybersecurity.

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