CyberArk To Acquire Venafi From Thoma Bravo For About $1.54 Bln Cash And Stock

(RTTNews) - Identity security company CyberArk Software Ltd. (CYBR) announced Monday it has signed a definitive agreement to acquire machine identity management firm Venafi from Thoma Bravo in a cash and stock deal valued at about $1.54 billion. The consideration includes approximately $1 billion in cash and approximately $540 million in shares.

This acquisition will combine Venafi's best-in-class machine identity management capabilities with CyberArk's leading identity security capabilities to establish a unified platform for end-to-end machine identity security at enterprise scale.

The combination of Venafi's certificate lifecycle management, private Public Key Infrastructure (PKI), IoT identity management and cryptographic code signing, with CyberArk's secrets management capabilities will enable organizations to protect against misuse and compromise of machine identities, vastly improve security, and stop costly outages.

Venafi offers complementary solutions that expand CyberArk's total addressable market (TAM) by nearly $10 billion to approximately $60 billion.

The Boards of Directors of both CyberArk and Venafi have each approved the transaction. The transaction is expected to close in the second half of 2024, subject to required regulatory approvals, clearances and other customary closing conditions.

Venafi is expected to add approximately $150 million annual recurring revenue (ARR). The transaction is expected to be accretive to margins immediately, with significant revenue synergies through cross-sell, up-sell and geographic expansion.