CyberArk acquires cybersecurity firm Venafi for $1.5 billion to bolster machine-to-machine security

Less than a month after acquiring UK cybersecurity company Darktrace for $5.3 billion in cash, US private equity firm Thoma Bravo appears to be selling off some of the companies in its portfolio. In an announcement on Monday, CyberArk said it has signed a definitive agreement to acquire cybersecurity firm Venafi from equity firm Thoma Bravo in a deal valued at around $1.54 billion.

Bloomberg first reported about the potential acquisition a week ago. The deal, which consists of $1 billion in cash and around $540 million in stock, is anticipated to close in the latter half of 2024, according to Reuters. CyberArk expects Venafi to contribute about $150 million in annual recurring revenue and immediately enhance CyberArk’s profit margins.

The acquisition is expected to create a more robust suite of security solutions aimed at protecting human and machine identities. Venafi, founded in 2000, specializes in machine identity management, securing the connections and communications between machines—a crucial function as the number of interconnected devices continues to rise. Venafi’s technology helps organizations safeguard these interactions and defend against cyberattacks.

Venafi’s platform manages various machine identity types by orchestrating cryptographic keys and digital certificates for SSL/TLS, IoT, mobile, and SSH. It provides comprehensive visibility of machine identities and the associated risks across the enterprise—whether on-premises, mobile, virtual, cloud, or IoT—at machine speed and scale.

The company’s automated remediation capabilities address security and availability risks tied to weak or compromised machine identities, ensuring the secure flow of information to trusted machines while blocking communications with untrusted ones.

Venafi