BREAKING NEWS: Utah-based Venafi is Being Bought by CyberArk for $1.54 Billion in Cash and Stock from Private Equity Firm, Thoma Bravo

Israel-based CyberArk will pay private equity firm, Thoma Bravo, ~$1 billion in cash and ~$540 million in stock to buy Salt Lake City-based Venafi, a transaction already approved by the boards of both CyberArk and Thoma Bravo.

Cybersecurity-focused Venafi is generating around $150 million in Annual-Recurring-Revenue (ARR) and is expected to expand CyberArk's Total Addressable Market (TAM) by 20% to ~$60 billion.

Salt Lake City-based Venafi is being purchased again, this time for ~$1.5 billion, as Israel-based CyberArk (NASDAQ:CYBR) today announced it will buy Venafi from private equity firm, Thoma Bravo in a cash and stock agreement.

According to the news release announcing the acquisition, CyberArk will pay Thoma Bravo roughly $1.0 billion in cash and $540 million in stock for Venafi.

Thoma Bravo acquired Venafi in December 2020 when it made a "strategic growth investment" in the firm that valued Venafi at $1.15 billion at the time.

Venafi is currently producing ~$150 million in Annual-Recurring-Revenue (ARR) and is expected to expand CyberArk's Total Addressable Market (TAM) by 20% to ~$60 billion.

A Quick Venafi Overview

Venafi defines itself as "... a leader in machine identity management ..." across all types of machines and environments.

In plain English, Venafi's technologies ensure than any attempted access to or from a Venafi-protected machine, network, application, or databased is verified before access is granted.

According to Wikipedia, Venafi traces its roots back to 1998 when two University of Washington graduates co-founded a predecessor firm after a successful consulting gig.

This predecessor firm, IMCentric, was moved to Utah in 2003 and incorporated as Venafi in 2005.

According to CyberArk and Thoma Bravo, "The (sale) is expected to close in the second half of 2024, subject to required regulatory approvals, clearances and other customary closing conditions."

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