CyberArk to Acquire Venafi: Strengthening Machine Identity Security Platform
CyberArk, a prominent identity security provider, has made a significant move by announcing its definitive agreement to acquire Venafi, a leading machine identity management provider, from Thoma Bravo. This strategic acquisition aims to combine Venafi’s advanced machine identity management capabilities with CyberArk’s expertise in identity security, creating a comprehensive platform for enterprise-scale machine identity security.
The CEO of CyberArk, Matt Cohen, emphasized the importance of addressing the growing identity security needs of global enterprises in light of the increasing use of machine identities in sophisticated cyberattacks. With the rise of digital transformation and cloud migration, the number of machine identities, including workloads, applications, IoT devices, and containers, has surged, outnumbering human identities significantly.
The urgency in managing machine identities has been highlighted by Forrester, citing the exponential increase in these identities and the associated risks if left unprotected. CyberArk’s acquisition of Venafi is expected to enhance its capabilities in securing and managing access secrets for machine identities, crucial in the current landscape of cloud computing, connectivity, and regulatory demands.
The acquisition details reveal that CyberArk will acquire Venafi for an enterprise value of approximately $1.54 billion, with the transaction expected to close in the second half of 2024. Venafi is projected to add around $150 million in annual recurring revenue and drive significant revenue synergies through cross-selling, up-selling, and geographic expansion.
Overall, this acquisition represents a mix of strategic synergies, combining technological integration and market expansion to create a scaled end-to-end machine identity security platform. With CyberArk’s track record in identity security and Venafi’s expertise in machine identity management, the combined entity is poised to deliver significant value to shareholders and address the evolving cybersecurity challenges faced by enterprises today.