Identity security company Cyberark has acquired identity governance and management (IGA) platform Zilla Security in transactions worth up to $175 million.
The transaction consists of a cash portion of $165 million and an additional $10 million “earn” that is paid when you meet certain milestones. This can be seen as an incentive for founders or other key talent to hang the transition phase.
Founded in 1999, Cyberark, based in Boston, specializes in access management. This includes privileged access security that helps organizations protect sensitive data and critical infrastructure from external (and internal) threats.
Cyberark had previously made eight known acquisitions, and last year it had the largest distance of $1.54 billion that it paid to Machine Identity Company’s Venafi.
Zilla is another Boston-based security company operated in the realm of identity and access management. However, given its founding in 2019, Zilla is a Nimbler Cloud native player who adds automation and AI-enabled capabilities to the mix, and the appeal of a much larger company founded before SaaS and Cloud. This is a proposal. Computing was established.
“What worked 20 years ago clearly doesn’t work,” Zilla CEO and co-founder Deepak Taneja said in a statement.
Since its founding six years ago, Zilla had raised about $19 million with supporters such as FirstMark, Pillar VC and Tola Capital.
Reshaping identity governance
The long and shortfall of all of this is that Cyberark wants to enhance its own product with “dedicated for the cloud” tools. AI is in the core and easy integration for hybrid and multi-cloud environments.
“By expanding the Cyberark Identity Security platform with Zilla’s latest IGA capabilities, we will deliver compliance and rebuild identity governance with scalable automation that maximizes security for modern enterprises.”
That doesn’t mean that Cyberark hasn’t modernized yet. The company published NASDAQ in 2014, and its shares are currently up over 1,000% at IPO prices. Over the past year alone, its valuation has grown by 41% to over $18 billion. Today, the company posted its fourth quarter results, revealing a 41% increase in revenue from the previous year. Specifically, subscription revenues in particular have increased by 62%, with annual repeat revenues (ARRs) exceeding $1 billion.
As a result of the transaction, Cyberark will provide major Zilla services, including Zilla Comply and Zilla Provisioning, as a standalone product through the Cyberark Identity Security Platform. Additionally, Zilla co-founders Deepak Taneja and Nitin Sonawane – and their team will join Cyberark.
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