$60B TAM Target: CyberArk Bolsters Machine Identity Solutions With Venafi Acquisition
Portfolio Pulse from Lekha Gupta
CyberArk Software Ltd. (NASDAQ:CYBR) has announced its acquisition of Venafi for $1.54 billion, expected to close in the second half of 2024. The deal includes $1 billion in cash and $540 million in shares. Venafi is projected to add $150 million in annual recurring revenue and enhance CyberArk's machine identity solutions, expanding its Total Addressable Market from $50 billion to $60 billion. The acquisition is anticipated to be accretive to margins immediately and offer significant revenue synergies.
May 20, 2024 | 3:49 pm
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POSITIVE IMPACT
First Trust NASDAQ Cybersecurity ETF (CIBR) provides exposure to CyberArk, which has announced a significant acquisition of Venafi for $1.54 billion. The deal is expected to enhance CyberArk's market position and financial performance.
CIBR holds CyberArk, which is making a significant acquisition. The positive impact on CyberArk's financials and market position is likely to benefit CIBR's performance.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
CyberArk's acquisition of Venafi for $1.54 billion is expected to close in the second half of 2024. The deal will add $150 million in annual recurring revenue and expand CyberArk's Total Addressable Market from $50 billion to $60 billion. The acquisition is anticipated to be accretive to margins immediately and offer significant revenue synergies.
The acquisition is strategically significant for CyberArk, enhancing its machine identity solutions and expanding its market. The immediate accretive impact on margins and significant revenue synergies are positive indicators for short-term stock performance.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100
POSITIVE IMPACT
iShares Cybersecurity and Tech ETF (IHAK) includes CyberArk, which is acquiring Venafi for $1.54 billion. The acquisition is expected to enhance CyberArk's market position and financial performance, benefiting IHAK.
IHAK holds CyberArk, which is making a significant acquisition. The positive impact on CyberArk's financials and market position is likely to benefit IHAK's performance.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 50