CyberArk Acquires Identity Governance Startup Zilla Security For Up To $175M

The startup offers a modernized, SaaS-based approach to identity governance, according to CyberArk.

CyberArk announced Thursday it has acquired identity governance startup Zilla Security for up to $175 million.

The venture-backed startup has offered a “modern,” SaaS-based approach to identity governance and administration (IGA), CyberArk said in a news release.

That’s in contrast to “legacy” IGA that “was built primarily for on-premises environments, relying heavily on manual processes with slow, time-consuming deployments,” CyberArk said in the release.

For identity security and access management company CyberArk, the acquisition will provide enhancements around automation and “accelerated identity compliance and provisioning” in various IT environments, it said.

The deal includes $165 million in cash along with a potential $10 million earn-out, according to publicly traded CyberArk.

Founded in 2019, Zilla Security launched its first channel partner program in April 2023 with the aim of working with channel partners around bringing its identity security and compliance tools to enterprise customers. Partners disclosed by Zilla have included include Optiv and GuidePoint Security.

In 2022, Zilla raised a $13.5 million Series A funding round led by Tola Capital and FirstMark Capital.

For CyberArk, the acquisition follows the company’s May 2024 deal to acquire machine identity specialist Venafi for $1.54 billion, which was the largest M&A deal in the vendor’s more than two-decade history.