Identity security company CyberArk has acquired identity governance and administration (IGA) platform Zilla Security in a deal worth up to $175 million.
Founded in 1999, Boston-based CyberArk specializes in access management, including privileged access security which helps organizations protect sensitive data and critical infrastructure from external (and internal) threats.
Zilla, for its part, is another Boston-based security company operating in the identity and access management realm. Founded in 2019, Zilla is a nimbler cloud-native player that has been adding more automation and AI-enabled features to its platform in the past few years, making it an alluring proposition for a company founded in the early days of the web before SaaS or cloud computing had taken hold.
“What worked 20 years ago clearly doesn’t work today,” Zilla CEO and co-founder Deepak Taneja said in a statement.
The long and short of all this is that CyberArk wants to bolster its own products with tools “purpose-built for the cloud,” with AI at its core and easy integrations for hybrid- and multi-cloud environments.
“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 CEO Matt Cohen added in a statement.
That’s not to say that CyberArk hasn’t already been modernizing. The company went public on the Nasdaq in 2014, and its shares currently sit more than 1,000% up on its IPO price — and in the past year alone, its valuation has surged 41% to more than $18 billion. Earlier today, the company posted its Q4 results that revealed a year-on-year revenue hike of 41%. Specifically, its subscription revenue in particular grew by 62%, with its annual recurring revenue (ARR) surpassing the $1 billion mark.
As a result of the transaction, CyberArk will offer key Zilla services — including Zilla Comply and Zilla Provisioning — as standalone products through the CyberArk identity security platform. Additionally, Zilla’s co-founders — Deepak Taneja and Nitin Sonawane — and their team will be joining CyberArk.
