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Thoma Bravo exits cybersecurity company Venafi in $1.54bn deal

Israel-based identity security company CyberArk has agreed to acquire Venafi, a machine identity management company backed by software-focused private equity firm Thoma Bravo, for approximately $1.54bn — to be paid in $1bn cash and $540m in CyberArk shares. 

The transaction is expected to close in H2 2024.

In a statement on Monday, CyberArk highlighted Venafi’s capabilities in certificate lifecycle management, private public key infrastructure (PKI), IoT identity management and cryptographic code signing. The company said that the acquisition is expected to add approximately $150 million in annual recurring revenue, as well as boost margins.

Matt Cohen, Chief Executive Officer, CyberArk, said that the acquisition of Venafi would “empower Chief Information Security Officers to defend against increasingly sophisticated attacks that leverage human and machine identities as part of the attack chain”.

Chip Virnig, a Partner at Thoma Bravo, added that his firm had “accelerated SaaS growth, expanded margins, and successfully created a best-in-class SaaS offering” at Venafi.

Morgan Stanley & Co and Latham & Watkins are advising CyberArk, while Piper Sandler and Kirkland & Ellis are advising Thoma Bravo.

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