CyberArk to Acquire Venafi, Enhancing Machine Identity Management Capabilities

CyberArk, the identity security company, has agreed to acquire Venafi, a leader in machine identity management, from Thoma Bravo for approximately $1.54 billion in a combination of cash and CyberArk shares. The acquisition aims to combine Venafi’s machine identity management capabilities with CyberArk’s identity security capabilities, establishing a unified platform for end-to-end machine identity security at enterprise scale.

The exponential growth of machine identities due to digital transformation and ongoing cloud migration has led to an urgent need for improved machine identity management. Venafi’s certificate lifecycle management and CyberArk’s secrets management capabilities will enable organizations to protect against misuse and compromise of machine identities. The combined solution is expected to be deployable as SaaS or hybrid, providing faster risk mitigation for organizations looking to secure modern cloud environments.

Venafi is anticipated to add approximately $150 million annual recurring revenue (ARR) and bring complementary capabilities to protect machine identities, expanding the Total Addressable Market (TAM) from $50 billion to $60 billion. CyberArk and Venafi have both approved the transaction, which is anticipated to close in the second half of 2024, subject to required regulatory approvals and other customary closing conditions.