CyberArk (NASDAQ: CYBR), a leading provider of identity security solutions, announced today the successful completion of its acquisition of Venafi, a leader in machine identity management, from Thoma Bravo. This acquisition enables CyberArk to further deliver on its vision to secure every identity – human and machine – with the right level of privilege controls. Together, CyberArk and Venafi will create end-to-end machine identity security solutions that help organizations significantly improve security and prevent costly outages. Venafi adds complementary solutions that expand CyberArk’s total addressable market by $10 billion (to approximately $60 billion).
“We are thrilled to officially welcome the exceptional Venafi team to CyberArk. Over the past months, every interaction has further validated that this acquisition is a great fit from all perspectives – technology, people, culture and spirit of innovation,” said Matt Cohen, Chief Executive Officer, CyberArk. “Machines are the fastest growing and most complex identity and today, many organizations rely on manual processes and siloed tools to secure and manage them. By joining forces, CyberArk and Venafi will set a new paradigm, with the industry’s most comprehensive platform for end-to-end machine identity security at enterprise scale.”
The ongoing digital transformation, widespread cloud computing, and the rise of artificial intelligence are driving an exponential growth in the number of machine identities, which can outnumber human identities by a ratio of 45 to 1. Yet, many of these identities remain undiscovered. If left unprotected and uncontrolled, they can become a common hunting ground for cybercriminals looking to exploit their vulnerabilities. To keep pace with the rapid growth of machine identities, a new paradigm is needed – a shift from inefficient manual, siloed approaches that create compliance and security risks to centralized management of machine identities across all applications and workloads for any cloud or IT environment at scale.
“CyberArk’s acquisition of Venafi underscores the growing recognition of the critical role machine identities play in securing modern digital environments,” said Katie Norton, Research Manager, DevSecOps and Software Supply Chain Security at IDC. “While organizations have heavily invested in human identity security, the automation and management of credentials for machine identities has not historically received the same attention. Together, the companies’ complementary capabilities should enable organizations to implement a more comprehensive machine identity security strategy, reducing risk and enhancing operational efficiency.”
All machine identities, including workloads, code, applications, devices, and IoT containers, must be discovered, managed, protected, and automated to ensure the security of their connections and communications. Venafi offers:

Among other things, CyberArk offers secret management capabilities. Thus, the combination of capabilities will enable vendors to protect organizations from the misuse and compromise of machine identities at scale.

Deal Details

Under the terms of the agreement, CyberArk acquired Venafi for approximately $1.54 billion in cash and CyberArk common stock (approximately $1 billion in cash and approximately $540 million in common stock).

Advisors

About CyberArk  

CyberArk (NASDAQ: CYBR) is the global leader in identity security. Centered on intelligent privilege controls, CyberArk provides the most comprehensive security offering for any identity – human or machine – across business applications, distributed workforces, hybrid cloud environments and throughout the DevOps lifecycle. The world’s leading organizations trust CyberArk to help secure their most critical assets.

About Venafi 

Venafi is a cybersecurity market leader and the category creator of machine identity management, securing machine-to-machine connections and communications. Venafi protects machine identity types by orchestrating cryptographic keys and digital certificates for SSL/TLS, SSH, code signing, mobile and IoT. Venafi provides global visibility of machine identities and the risks associated with them for the extended enterprise—on premises, mobile, virtual, cloud and IoT—at machine speed and scale. Venafi puts this intelligence into action with automated remediation that reduces the security and availability risks connected with weak or compromised machine identities while safeguarding the flow of information to trusted machines and preventing communication with machines that are not trusted.

About Thoma Bravo  

Thoma Bravo is one of the largest software-focused investors in the world, with approximately US$160 billion in assets under management as of June 30, 2024. Through its private equity, growth equity and credit strategies, the firm invests in growth-oriented, innovative companies operating in the software and technology sectors. Leveraging Thoma Bravo’s deep sector knowledge and strategic and operational expertise, the firm collaborates with its portfolio companies to implement operating best practices and drive growth initiatives. Over the past 20+ years, the firm has acquired or invested in more than 490 companies representing approximately US$265 billion in enterprise value (including control and non-control investments). The firm has offices in Chicago, London, Miami, New York and San Francisco.