[Corrected 10/7/15, 12:46 p.m. See below.] It’s been a busy week for consolidation in the cybersecurity industry.
CyberArk (NASDAQ: [[ticker:CYBR]]) said today it will acquire Waltham, MA-based Viewfinity for $30.5 million in cash.
The tie-up follows yesterday’s announcement that Waltham-based Digital Guardian has acquired Code Green Networks, a Silicon Valley data-protection firm, for an undisclosed price.
The deals continue the trend of mergers and acquisitions in cybersecurity, as companies see opportunities to broaden and unify their products and services for organizations that are increasingly under attack from inside and outside their own networks.
That appears to be part of the calculus for CyberArk in scooping up Viewfinity. CyberArk, which is based in Israel and has U.S. headquarters in Newton, MA, makes software to help banks and other businesses manage user privileges, sensitive data, and applications security, with a focus on protecting against insider threats.
With the acquisition, CyberArk strengthens its ability to control user privileges, with the goal of limiting cyber attackers’ “ability to move beyond their initial point of entry,” the company said in a press release.
“Privilege vulnerabilities exist all throughout an organization’s IT infrastructure—whether deep within the network or on end user devices—and are exploited in 80 to 100 percent of advanced attacks,” CyberArk president and CEO Udi Mokady said in the release. “The addition of Viewfinity to the CyberArk solution extends privileged account security to the beginning stages of the attack cycle, decreasing the probability of wider infection and lateral movement.”
Founded in 1999, CyberArk raised $86 million in an initial public offering last year. This marks its second acquisition since going public, following the purchase of Israel-based cybersecurity company Cybertinel in August for an undisclosed price. CyberArk said it expects Viewfinity to boost its revenue by $7 million to $9 million in 2016. [An earlier version of this paragraph incorrectly stated that Viewfinity was CyberArk’s first acquisition since its IPO. We regret the error.]
