CyberArk (NASDAQ:CYBR), the company that protects organizations from cyber attacks that have made their way inside the network perimeter, today announced that it has signed a definitive agreement to acquire privately held Viewfinity, Inc., a Waltham, Mass.-based provider of Windows least privilege management and application control software for $30.5 million in cash. The transaction is expected to close in the fourth quarter of 2015.
Acquiring Viewfinity enables CyberArk to remove administrative privileges from business users, and limit the privileges available to users and applications to only what is needed, allowing only trusted applications to run. This enables organizations to stop the progression of most malware-based attacks at the endpoint, limiting the attacker’s ability to move beyond their initial point of entry.
With the acquisition of Viewfinity, CyberArk will offer protection against privileged-based attacks targeting both business and IT users. Viewfinity’s integrated least privilege and application control solution, combined with CyberArk’s credential vaulting will provide a comprehensive endpoint privilege management solution from the established leader in privileged account security.
The Viewfinity offering is available as either an on-premise or SaaS-based solution.
“CyberArk’s acquisition of Viewfinity is another step forward in our strategy to advance the new security layer inside the network that is necessary to protect valuable corporate assets from cyber attacks,” said Udi Mokady, President and Chief Executive Officer of CyberArk. “Privilege vulnerabilities exist all throughout an organization’s IT infrastructure – whether deep within the network or on end user devices -- and are exploited in 80-100% of advanced attacks. 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.”
The Viewfinity solution operates with a single agent on the endpoint that handles privilege management and application control, using a kernel-based architecture that provides deep forensics and detection capabilities. The solution also offers a variety of deployment options, allowing organizations to select the most effective strategy to speed time to value, simplify deployment processes and reduce costs.
“Windows privilege management is an important part of a robust privileged account security program and we are seeing increased customer demand for it, driven by both risk and regulatory requirements. By having this technology in-house, our customers will benefit from a single, trusted partner with an integrated solution addressing all of their privileged account security needs,” Mokady added.
“We are excited to become part of CyberArk to help advance the Privileged Account Security Solution as the critical new security layer to protect businesses from the most damaging cyber attacks,” said Gil Rapaport, Viewfinity president and co-founder. “With CyberArk, Viewfinity’s customers will gain from the company’s global presence and support capabilities, continued innovation and coming integration with the CyberArk Shared Technology platform.”
Expected Financial Impact of Viewfinity
For the fourth quarter of 2015, CyberArk currently expects the Viewfinity acquisition to have an immaterial impact on revenue and non-GAAP earnings per share. CyberArk currently believes that Viewfinity will contribute approximately $7 million to $9 million in revenue and will be accretive to non-GAAP earnings per share for 2016. Viewfinity has both a perpetual license and subscription-based revenue model.
CyberArk will host a conference call today October 7, 2015 at 8:00 a.m. Eastern Time (ET) to discuss the transaction. To access this call, dial 877-440-5788 (U.S.) or 719-325-4745 (international). The conference ID is 874451. Additionally, a live webcast of the conference call will be available via the “Investor Relations” section of the company’s web site at www.cyberark.com. Following the conference call, a replay will be available for one week at 877-870-5176 (U.S.) or 858-384-5517 (international). The replay pass code is 874451. An archived webcast of the conference call will also be available in the “Investor Relations” section of the company’s web site at www.cyberark.com.
Viewfinity is a leader in privilege management and application control software. 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. Viewfinity, headquartered in Waltham, Mass., with research and development facilities in Beit Dagan, Israel was founded in 2007. The company serves approximately 300 customers in a diverse range of industries including energy, telecommunications, government and education.
CyberArk is the only security company focused on eliminating the most advanced cyber threats; those that use insider privileges to attack the heart of the enterprise. Dedicated to stopping attacks before they stop business, CyberArk proactively secures against cyber threats before attacks can escalate and do irreparable damage. The company is trusted by the world’s leading companies – including 40 percent of the Fortune 100 and 17 of the world’s top 20 banks – to protect their highest value information assets, infrastructure and applications. A global company, CyberArk is headquartered in Petach Tikvah, Israel, with U.S. headquarters located in Newton, Mass. The company also has offices throughout EMEA and Asia-Pacific. To learn more about CyberArk, visit www.cyberark.com, read the company blog, http://www.cyberark.com/blog/, follow on Twitter @CyberArk or Facebook at https://www.facebook.com/CyberArk.
This release may contain forward-looking statements, which express the current beliefs and expectations of CyberArk’s management. Such statements involve a number of known and unknown risks and uncertainties that could cause the Company’s future results, performance or achievements to differ significantly from the results, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating to: our ability to successfully complete and integrate the Viewfinity acquisition, including by selling products to each other’s existing customers; changes in the new and rapidly evolving cyber threat landscape; failure to effectively manage growth; fluctuations in quarterly results of operations; real or perceived shortcomings, defects or vulnerabilities in the Company’s solution or the failure of the solution to meet customers’ needs; the inability to acquire new customers or sell additional products and services to existing customers; competition from IT security vendors and other factors discussed under the heading “Risk Factors” in the Company’s most recent annual report on Form 20-F filed with the Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the Private Securities Litigation Reform Act of 1995. These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise.
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