CyberArk Software, one of the most valuable Israeli firms traded on Nasdaq, has announced the acquisition of US-based Zilla Security in a deal worth up to $175 million. Through the integration of Zilla’s automation tools, CyberArk’s identity security platform would be improved.

The deal states that CyberArk will pay $165 million in cash for the purchase, with a further $10 million being paid if future performance targets are met.

Using Automation to Increase Identity Security

Since going public on the Nasdaq in 2014, CyberArk has amassed a market capitalization of around $20 billion. Protecting privileged accounts within business networks to protect sensitive data and vital infrastructure from cyber threats is the company’s area of expertise in identity security.

Zilla Security, a Boston-based company, has created a cutting-edge software platform that streamlines identity compliance and provisioning. Businesses can easily integrate both standard and custom apps with this technology while still adhering to security and legal requirements.

By utilizing AI-powered automation to “secure every identity – human and machine – with the right level of privilege controls” across various digital ecosystems, CyberArk plans to enhance its identity security platform with the acquisition of Zilla.

Developing Identity Governance’s Future

Matt Cohen, CEO of CyberArk, emphasized the increasing intricacy of identity management in the current digital environment:

“As enterprises navigate the proliferation of privilege in complex identity landscapes, modern capabilities become critical for protecting digital assets and maintaining business agility.”

He added that CyberArk will “reshape identity governance with scalable automation that delivers compliance and helps maximize security for the modern enterprise” by incorporating Zilla’s automation-driven security solutions.

Security Powered by AI in a Digital Age

With the emergence of cloud-based services and AI-powered solutions, the cybersecurity landscape is changing quickly. A growing attack surface and an increase in both human and non-human identities, such as bots and machine workloads, are the results of businesses’ increased adoption of hybrid work environments.

Identity governance solutions were mostly created for on-premises systems prior to cloud migration and digital transformation, depending on laborious and sluggish manual procedures. With Zilla Security’s automated identity governance and administration (IGA) technology, CyberArk seeks to address these issues.

Deepak Taneja, co-founder and CEO of Zilla Security, emphasized this change by saying:

“What worked 20 years ago clearly doesn’t work today. Zilla represents a fundamental shift in how organizations can manage identity governance and administration (IGA).”

“By harnessing the power of AI, we’ve automated IGA, making it simpler, faster and more cost-effective.”

CyberArk’s Market Position and Ongoing Growth
Established in 1999, CyberArk has more than 4,000 employees globally, including 1,000 at its headquarters in Petah Tikva and its research and development facility in Beersheba, Israel. Nearly 10,000 clients worldwide are served by the company, and over 50% of Fortune 500 businesses depend on its cybersecurity solutions.

CyberArk’s 2024 earnings report, which showed a 33% year-over-year sales gain and surpassed the $1 billion revenue milestone, was released concurrently with the acquisition announcement. Revenue from subscriptions skyrocketed to $733.3 million, a 55% rise over the prior year.

CyberArk is solidifying its position as a leader in identity security by purchasing Zilla Security. The company plans to use AI-driven automation to tackle the growing difficulties of contemporary cybersecurity.