CyberArk Software Ltd. CYBR recently announced that the acquisition of privately held Viewfinity Inc. has been closed, per the definitive agreement signed on Oct 7. This is the company’s second acquisition since it went public in Sep 2014.
The Israel-based cyber security solutions provider acquired Viewfinity in an all-cash deal worth $30.5 million. The transaction is expected to enhance CyberArk capabilities in the online security space.
Founded in 2007, Viewfinity has approximately 30 employees and serves about 300 customers across various industries including energy, telecommunications, government and education. The Waltham, MA-based company is one of the leading providers of privilege management and application control software that restricts attackers at the initial point of entry.
Per CyberArk, “Through automated, policy-based monitoring, elevation, threat detection, and incident remediation, Viewfinity eliminates the administrative bottlenecks of operating with admin rights removed, while bringing end-point level visibility and actionable data to security.”
On the other hand, CyberArk specializes in offering solutions which secure organizational privileged accounts, sensitive data and applications from cyber attacks, especially insider threats.
Therefore, the acquisition will help CyberArk to offer complete security solutions to protect data against external as well as internal cyber threats.
Notably, CyberArk expects the latest buyout to be accretive to 2016 results. The acquisition, anticipated to generate additional revenues of $7–$9 million in 2016, will likely be accretive to the company’s non-GAAP earnings.
In the recent times, demand for cyber security has seen a surge. Since the beginning of 2015, numerous data breaches at high-profile business houses and government agencies prompted the need for tighter security measures, which in turn, boosted the demand for cyber security solutions.
With rapid technological advancement, more and more organizations are adopting the “bring your own device” (BYOD) policy to enhance employee productivity with anytime, anywhere access. This trend, on the other hand, has made it necessary for the companies to enforce stricter data-security measures.
Moreover, the cyber attacks at Anthem Inc. ANTM and Sony Corp. SNE earlier this year escalated the need for Internet security products. Also, we expect the increasing expenditure for IT security to benefit cyber-security companies, going forward. Per research firm Gartner Inc. IT, in 2014, global spending on IT security was about $70 billion, which will likely reach $76.9 billion in 2015.
Therefore, CyberArk’s strategy of expanding its portfolio and capabilities through acquisitions will boost long-term revenues, in our view.
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