Identity security firm CyberArk has acquired the identity governance and administration (IGA) platform Zilla Security in a transaction valued at up to $175 million.
The acquisition includes a cash payment of $165 million, along with a potential “earn-out” of $10 million that will be paid as milestones are achieved. This structure serves as an incentive for the founders and other key personnel to remain during the integration phase.
Established in 1999, CyberArk is headquartered in Boston and focuses on access management, particularly privileged access security, which helps organizations safeguard sensitive data and crucial infrastructure from both internal and external threats.
CyberArk has previously made eight acquisitions, with the largest being the $1.54 billion purchase of machine identity firm Venafi last year.
Zilla, also based in Boston, operates in the identity and access management space. Founded in 2019, Zilla is a more agile, cloud-native entity that has been incorporating automation and AI-driven features, making it an enticing target for a much larger organization that was founded before the growth of SaaS and cloud computing.
“What worked 20 years ago clearly doesn’t work today,” commented Zilla CEO and co-founder Deepak Taneja in a statement.
Since its inception six years ago, Zilla has raised approximately $19 million, supported by investors such as FirstMark, Pillar VC, and Tola Capital.
Transforming Identity Governance
Overall, CyberArk aims to enhance its offerings with tools specifically designed for the cloud, featuring AI at their core and seamless integrations for hybrid and multi-cloud environments.
“By integrating Zilla’s advanced IGA capabilities into the CyberArk Identity Security Platform, we will transform identity governance through scalable automation that ensures compliance and enhances security for today’s enterprises,” stated CyberArk CEO Matt Cohen.
It’s noteworthy that CyberArk has been evolving its operations; the company went public on Nasdaq in 2014, and its stock has soared over 1,000% since its IPO. Just in the past year, its valuation has increased by 41% to exceed $18 billion. Earlier today, CyberArk reported its Q4 results, showcasing a year-over-year revenue growth of 41%, with subscription revenue rising by 62% and annual recurring revenue (ARR) surpassing the $1 billion milestone.
Following this acquisition, CyberArk will integrate key offerings from Zilla, such as Zilla Comply and Zilla Provisioning, into their identity security platform as standalone services. Moreover, Zilla’s co-founders, Deepak Taneja and Nitin Sonawane, along with their team, will be joining CyberArk.
Compiled by Techarena.au.
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