CyberArk Buys Identity Security Vendor Idaptive For $70 Million
Thoma Bravo-owned Idaptive was formed just 16 months ago after spinning out from Centrify, and provides single sign-on, multifactor authentication and identity life-cycle management services.
CyberArk has purchased Idaptive for $70 million to extend its ability to manage and protect identities with various levels of privileges across hybrid and multi-cloud environments.
The Newton, Mass.-based privileged access management vendor said its acquisition of Santa Clara, Calif.-based Idaptive will allow for a security-first approach to managing identities that’s adaptive and context-aware to dramatically reduce risk. This will allow customers to improve their overall security posture and address complex regulatory requirements while maintaining a seamless user experience.
“With Idaptive, CyberArk will offer customers a SaaS-delivered, security-first approach to managing identities—with Privileged Access Management at its core—that reduces risk, simplifies operations and improves business agility,” CyberArk founder, Chairman and CEO Udi Mokady said in a statement.
CyberArk’s stock is down $4.74, or 4.32 percent, to $105 per share in premarket trading. The company also reported first-quarter earnings early Wednesday, with sales in the quarter climbing 11.4 percent on a year-over-year basis to $106.8 million while net income plummeted 82.6 percent from last year to $2.4 million, or 6 cents per share.
Idaptive was formed just 16 months ago after spinning out from privileged access management competitor Centrify. The company employs 122 people and—like Centrify—has been owned by private equity giant Thoma Bravo, according to LinkedIn. Idaptive is led by Danny Kibel, who had served as Centrify’s vice president of engineering and operations until the launch of Idaptive on Jan. 1, 2019.
“A traditional approach to managing identities and access is often not enough to prevent unauthorized activity,” Mokady said in a blog post. “This new reality requires a new kind of Identity Security platform—and together with Idaptive, we are answering that call.”
Idaptive offers comprehensive single sign-on, multi-factor authentication and identity life-cycle management for workforce, third-party, machine and consumer identities, according to CyberArk. The company’s capabilities allow for the escalation of suspicious user interactions while fast-tracking non-risky requests to enable users to be both secure and productive, CyberArk said.
The company can also deliver robust multi-directory support that doesn’t require the replication of identity information, thereby improving operational efficiency, according to CyberArk. Idaptive utilized artificial intelligence to secure access to applications and endpoints through user verification, device validation and intelligently limiting access, Mokady said in the blog post.
Mokady said that human, application or machine identities are often provisioned with some form of privileged access. If these users aren’t properly secured, Mokady said these accounts can create pathways for threat actors to execute increasingly targeted attacks and ultimately compromise an organization’s most critical systems and assets. Idaptive serves 500 customers in a variety of industries.
“Merging the innovative technology and talents of the Idaptive team with that of CyberArk represents an exciting opportunity to deliver a differentiated, modern approach as we work to continually meet the ever-changing needs of the dynamic threat landscape,” Mokady said in the blog post.
This is CyberArk’s first acquisition since March 2018, when the company bought certain assets of Vaultive to boost proactive cloud security controls and streamline the user experience for privileged accounts and cloud administrators.