CyberArk Acquires Zilla Security for US$175 Million

CyberArk, a Boston-based identity security company, has acquired Zilla Security, an identity governance and administration (IGA) platform, in a deal worth up to US$175 million. The transaction includes US$165 million in cash, along with an additional US$10 million earn-out based on specific performance milestones.

This acquisition is part of CyberArk’s broader strategy to strengthen its cloud-native identity security offerings. “Integrating Zilla’s advanced IGA features into the CyberArk Identity Security Platform allows us to transform identity governance with scalable automation, ensuring compliance and enhancing security for enterprises,” said Matt Cohen, CEO, CyberArk.

Founded in 1999, CyberArk is known for its expertise in access management and privileged access security, safeguarding organizations from both internal and external threats. Zilla Security, established in 2019, focuses on cloud-native identity security solutions, incorporating automation and AI into its platform. 

“Legacy systems are no longer sufficient. By leveraging AI, Zilla has transformed identity governance, making it faster, simpler, and more cost-effective. With CyberArk, we can now bring this innovation to a global scale,” Deepak Taneja, CEO, Zilla Security.

Previously, CyberArk has made eight acquisitions, with its largest being the US$1.54 billion purchase of Venafi in 2023, as reported by TechCrunch. The Zilla Security acquisition continues this trend, with a specific focus on enhancing cloud-native identity governance solutions. Under the terms of the deal, CyberArk will incorporate Zilla’s core products—Zilla Comply and Zilla Provisioning—into its existing platform, offering them as standalone solutions.

The company’s growth has been remarkable, with CyberArk’s stock increasing by over 1,000% since its 2014 Nasdaq IPO. In Q4, it reported a 41% year-over-year revenue growth, including a 62% increase in subscription revenue, while its annual recurring revenue (ARR) surpassed US$1 billion.