CyberArk Acquires Zilla Security for Up to $175 Million: A Major Move in Cybersecurity

In a significant move to enhance its offerings in the identity security sector, CyberArk has acquired the innovative identity governance and administration (IGA) platform Zilla Security in a deal valued at up to $175 million. This acquisition is set to strengthen CyberArk’s position in providing advanced security solutions that address modern enterprise needs.

Details of the Acquisition

The acquisition consists of a cash payment of $165 million, accompanied by a potential $10 million earn-out that is contingent upon achieving specific milestones. This structure serves as an incentive for Zilla’s founders and key personnel to remain during the transition period.

About CyberArk

Founded in 1999 and headquartered in Boston, CyberArk specializes in access management, focusing on privileged access security. This enables organizations to protect sensitive data and critical infrastructure from various threats, both internal and external.

Previous Acquisitions

CyberArk has a history of strategic acquisitions, including its notable purchase of machine identity company Venafi for $1.54 billion last year. The recent acquisition of Zilla marks its ninth known acquisition to date.

Introducing Zilla Security

Zilla Security, established in 2019, is also based in Boston and operates within the identity and access management sector. As a cloud-native company, Zilla focuses on integrating automation and AI-driven features, making it an attractive addition to CyberArk’s portfolio.

Insight from Zilla’s Leadership

Deepak Taneja, CEO and co-founder of Zilla, emphasized the necessity for modern solutions, stating, “What worked 20 years ago clearly doesn’t work today.” This perspective aligns with CyberArk’s vision of evolving its capabilities.

Enhancing Identity Governance

This acquisition is part of CyberArk’s strategy to enhance its product suite with tools that are specifically designed for cloud environments. AI is set to play a crucial role in these developments, enabling seamless integration for hybrid and multi-cloud setups.

Statements from CyberArk Executives

CyberArk CEO Matt Cohen remarked, “By expanding the CyberArk Identity Security Platform with Zilla’s modern IGA capabilities, we will reshape identity governance with scalable automation that delivers compliance and helps maximize security for the modern enterprise.”

CyberArk’s Financial Growth

CyberArk has been on a growth trajectory since its public debut on the Nasdaq in 2014. Its stock has risen over 1,000% since its IPO, and the company reported a 41% increase in valuation over the past year, surpassing $18 billion. Notably, subscription revenue grew by 62%, pushing its annual recurring revenue (ARR) past the $1 billion threshold.

Future Offerings

Following the acquisition, CyberArk plans to offer key Zilla services, including Zilla Comply and Zilla Provisioning, as standalone products through its identity security platform. The co-founders of Zilla, Deepak Taneja and Nitin Sonawane, along with their team, will also join CyberArk, further enhancing the company’s expertise and capabilities.

For more information about CyberArk’s innovative solutions, visit their official website.