CyberArk, the identity security company, is set to acquire Venafi, a leader in machine identity management, from Thoma Bravo, for $1.54 billion — in $1 billion in cash and $540 million in shares.
This acquisition will combine Venafi’s 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.
Venafi is expected to add approximately $150 million annual recurring revenue (ARR).
“This acquisition marks a pivotal milestone for CyberArk, enabling us to further our vision to secure every identity – human and machine – with the right level of privilege controls,” said Matt Cohen, Chief Executive Officer, CyberArk.
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.
Venafi brings a strong business model with 95 percent in recurring revenue, including SaaS and Term Based License Revenue.
The transaction is expected to be accretive to margins immediately, with significant revenue synergies through cross-sell, up-sell and geographic expansion.
Venafi offers complementary solutions that expand CyberArk’s total addressable market (TAM) by nearly $10 billion to approximately $60 billion.
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, improve security, and stop costly outages.
“Venafi has accelerated SaaS growth, expanded margins, and successfully created a best-in-class SaaS offering, setting the stage for continued innovation,” said Chip Virnig, a Partner at Thoma Bravo.
