CyberArk acquires Zilla Security for $175 million

NEWTON, Mass. & PETACH TIKVA, Israel - CyberArk (NASDAQ:CYBR), a prominent player in identity security, has completed the acquisition of Zilla Security, a company specializing in modern Identity Governance and Administration (IGA) solutions. This move, announced today, sees CyberArk purchasing Zilla Security for an enterprise value of $165 million in cash and an additional $10 million earn-out based on achieving specific milestones.

The acquisition aims to enhance CyberArk’s Identity Security Platform by integrating Zilla’s AI-powered IGA capabilities. This strategic move is designed to address the evolving digital landscape, where traditional IGA systems, typically built for on-premises environments, struggle to cope with the rapid expansion of cloud and SaaS applications. The company’s impressive 30.31% revenue growth and strong gross profit margins of 81.07% demonstrate its successful execution in the cybersecurity market. For deeper insights into CyberArk’s growth metrics and 14 additional key investment indicators, visit InvestingPro.

Zilla’s modern IGA SaaS platform is purpose-built for the cloud era, promising to deliver faster deployment times, reduced effort in access reviews, and more efficient provisioning. According to the press release, Zilla’s clients have reported deploying the system five times quicker than legacy IGA solutions, completing access reviews with 80% less effort, and enabling faster provisioning with 60% fewer IT service management tickets.

The integration of Zilla’s technology into CyberArk’s platform is expected to provide scalable automation, facilitating accelerated identity compliance and provisioning across digital environments, while enhancing security and operational efficiency. This acquisition is part of CyberArk’s ongoing strategy to secure every identity, both human and machine, with appropriate privilege controls.

CyberArk’s CEO, Matt Cohen, expressed enthusiasm for the acquisition, highlighting Zilla’s co-founders Deepak Taneja and Nitin Sonawane’s expertise in IGA, which will be instrumental in shaping the future of modern IGA and identity security.

Zilla’s modern IGA capabilities, including Zilla Comply and Zilla Provisioning, are now available from CyberArk as standalone offerings. These solutions aim to simplify user access reviews, automate provisioning tasks, and ensure appropriate entitlements and access for all identities.

This acquisition is a testament to CyberArk’s commitment to expanding its AI-powered Identity Security Platform, which includes discovery and onboarding of identities, applying privilege controls, and automating lifecycle management, policy, governance, and compliance. Trading near its 52-week high of $394.31, CyberArk’s stock currently stands at $380.86. Based on InvestingPro’s Fair Value analysis, the stock appears overvalued, though the company’s strong financial health score and robust growth trajectory suggest continued momentum. A comprehensive Pro Research Report, available with an InvestingPro subscription, provides detailed analysis of CyberArk’s valuation and growth prospects.

The information reported is based on a press release statement.

In other recent news, CyberArk Software (ETR:SOWGn) has been the subject of several positive developments. JPMorgan analysts recently increased their price target for the company from $375 to $431, citing strong execution, improving fundamentals, and a competitive market position. The analysts also highlighted the company’s expansion into adjacent markets and robust platform demand. CyberArk’s recent acquisition of Venafi was noted as a strategic move, positioning the company well in the machine identity market.

Similarly, Guggenheim analysts increased their price target on CyberArk to $417 from $373, expecting the company to surpass its fourth-quarter subscription and total revenue targets. They also anticipate CyberArk to provide guidance for 2025 total revenue and ARR above current market expectations.

In addition, Piper Sandler increased its price target for CyberArk to $440, expressing confidence in the company’s potential to accelerate the growth of Venafi. Meanwhile, UBS analyst Roger Boyd increased the price target for CyberArk to $440, highlighting the company as a top pick heading into 2025.

Lastly, CyberArk announced a strategic integration with SentinelOne (NYSE:S)’s SentinelOne Singularity, an AI-powered cybersecurity platform. This collaboration aims to bolster endpoint threat detection and response by merging SentinelOne’s Singularity Endpoint solution with CyberArk’s Endpoint Privilege Manager. These are the recent developments surrounding CyberArk.

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