CyberArk is officially the underdog Israeli unicorn: It is now valued at nearly $1.7 billion. In one graph, you can see how they got there
Since Israeli enterprise security company CyberArk went public in September 2014, it has bought not just one Israeli startup, but two. On Thursday, it announced that it acquired Viewfinity, a cybersecurity outfit founded in 2007 that prevents, monitors, detects, and alleviates attacks by restricting administrative access while dealing with attacks that do occur, for $30.5 million in a cash deal.
Just two months ago, CyberArk bought Israeli startup CYBERTINEL, which monitors real-time threats, for approximately $20 million. While CyberArk’s IPO last year did not appear impressive given the mere $80 million of capital raised for its starting day on the NASDAQ, particularly after being around for 15 years since launching, it has made up for those low expectations in spades. Even though its first shares were sold for between $13 and $15 a share, now they are selling for $53.65 at the time of writing.
This actually makes CyberArk a unicorn: Its market capitalization, or valuation based on the current number of outstanding shares at its latest share price, is $1.69 billion.
Here, you can see CyberArk’s impressive growth since its initial public offering.
Why is CyberArk suddenly so successful?
On the surface, CyberArk sounds similar to most other cybersecurity companies. Its simple mission is that it strikes down attackers once they have already entered a business’s system.
What sets CyberArk apart is that founders Alon N. Cohen and current CEO Udi Mokady launched the company in 1999, making it one of the first cybersecurity startups. Its league of impressive investors Seed Capital Partners, Cabaret-ArbaOne, Jerusalem Venture Partners (JVP), JP Morgan/Chase Partners and Vertex Venture Capital also undoubtedly helped the company rise to become one of the leading industry enterprise security solutions. Now it serves 40% of the Fortune 100 and 17 of the world’s top 20 banks.
Since customers increasingly want security solutions that are comprehensive, CyberArk has deftly gone on an acquisition spree so that it can expand its offerings. And because Israel has such a strong hold of the cybersecurity market, it hasn’t needed to broach the Mediterranean Sea.
More about the deal with Viewfinity
Viewfinity’s Windows least privilege management solution will help CyberArk offer protection against privileged-based enterprise attacks, which constitute the majority of malware. The cash deal is expected to come to fruition in Q4.