Tenable to acquire Vulcan Cyber for $150 million

COLUMBIA, Md. – Tenable Holdings, Inc. (NASDAQ:TENB), a leader in exposure management with a market capitalization of $5.35 billion and impressive gross profit margins of 77.55%, announced its definitive agreement to purchase Vulcan Cyber Ltd., a prominent innovator in the same field. The acquisition, valued at about $147 million in cash and $3 million in restricted stock units, is set to close in the first quarter of 2025, pending customary closing conditions. According to InvestingPro data, Tenable has maintained strong revenue growth of 14% over the last twelve months.

This strategic move aims to enhance Tenable’s Exposure Management platform by integrating Vulcan Cyber’s capabilities, which include improved visibility, risk prioritization, and remediation efforts across various security domains. Tenable’s co-CEO and CFO, Steve Vintz, expressed that the acquisition addresses the fragmented approach to cyber risk management faced by organizations today. InvestingPro analysis reveals that 17 analysts have revised their earnings upwards for the upcoming period, suggesting strong confidence in the company’s strategic direction.

The expanded Tenable One platform will benefit from Vulcan Cyber’s robust features, such as access to data from over 100 security products and AI-powered risk prioritization that will help organizations focus on the most critical vulnerabilities. Automated remediation workflows and advanced AI capabilities are also anticipated to revolutionize how customers manage and mitigate risk across their security stacks.

Yaniv Bar-Dayan, Co-Founder and CEO of Vulcan Cyber, conveyed enthusiasm for the merger, emphasizing that it will enable security teams to consolidate exposure findings into a single actionable interface for the first time at scale.

Tenable’s acquisition of Vulcan Cyber reflects the company’s commitment to providing comprehensive solutions for managing cyber risks holistically. The integration of Vulcan Cyber’s platform into Tenable’s offerings is expected to deliver significant benefits to customers by streamlining their security operations and enhancing their ability to address vulnerabilities effectively.

This press release statement highlights Tenable’s ongoing efforts to expand its market presence and capabilities in the field of exposure management. The financial terms of the deal suggest a significant investment in Vulcan Cyber’s technology and expertise, which Tenable believes will be pivotal in advancing its service offerings and customer impact. With its next earnings report due on February 5th, investors can access comprehensive analysis and additional insights through InvestingPro’s detailed research reports, which cover over 1,400 US stocks including Tenable.

In other recent news, Tenable, a cybersecurity company, has reported strong Q3 financial performance, with revenues reaching $227.1 million, marking a 13% increase from the previous year. The company’s earnings per share stood at $0.32, and it announced a $200 million increase to its share repurchase program. These developments were driven by high demand for Tenable’s One and Cloud Security products, as well as successful ventures in the public sector and mid-market. Tenable added 386 new enterprise customers and witnessed a 100% year-over-year growth in its Cloud Security.

However, analyst firms Stifel and Morgan Stanley (NYSE:MS) have both downgraded Tenable’s stock rating. Stifel downgraded Tenable from Buy to Hold, citing a cautious approach towards the Vulnerability Management market. Morgan Stanley also downgraded Tenable to Equal-weight from Overweight, noting challenges including increased pricing pressure within the company’s core market. Both firms have adjusted their price targets for Tenable, with Stifel setting it at $45 and Morgan Stanley at $47.

Despite the downgrades, Tenable’s Q4 revenue is projected to be between $229 million and $233 million, and the full-year revenue is expected to fall between $893.3 million and $897.3 million. Non-GAAP diluted EPS for Q4 is estimated to range from $0.33 to $0.35. These are recent developments that investors should take into account.

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