Tenable’s $265M Ermetic Acquisition Deal: 5 Things To Know

September 07, 2023, 05:08 PM EDT

The integration of Ermetic’s technology will make Tenable a formidable competitor in the cloud security market, executives told CRN.

All-In On Cloud Security

With the addition of capabilities from its planned acquisition of Ermetic, Tenable will be poised to go head-to-head with top players in the cloud security market including Palo Alto Networks, executives told CRN. The $265 million cash-and-stock acquisition deal announced Thursday is expected to close early in the fourth quarter, and brings “leading” cloud identity and permissions management technology as well as a complete cloud-native application protection platform (CNAPP) offering, according to the company.

CNAPP — a term coined by Gartner in 2021 — describes a unified cloud security platform that spans cloud infrastructure, workloads, identities and more. Major vendors in the space include Palo Alto Networks, Lacework, CrowdStrike, Check Point, Wiz and Orca Security, according to a Gartner report from March. Both Tenable and Ermetic also made Gartner’s list of representative CNAPP vendors. And so, following the expected integration Ermetic’s technology with Tenable, “this puts us in a very, very strong position” in CNAPP versus competitors, said Terry Dolce (pictured), executive vice president for operations, global business development and channels at Tenable.

The planned acquisition of Ermetic — which CRN named as one of the 10 hottest cybersecurity startups of the year in June — will also open up massive opportunities for Tenable channel partners, according to Dolce and Jeff Brooks, vice president of channels and alliances at Tenable. The company, which generates 100 percent of its sales with the channel, is aiming to enable its 5,000 partners to bring Ermetic’s technology to customers on “day one” after the acquisition closes, Brooks said.

Ultimately, the combination of Ermetic’s CNAPP capabilities with Tenable’s well-known vulnerability and risk management platform, Tenable One, will create a highly differentiated and consolidated offering for partners and customers, executives said in interviews Thursday.

What follows are five key things to know about Tenable’s planned acquisition of Ermetic.

Learn More: Cloud Security | Cybersecurity | Mergers and Acquisitions

Kyle Alspach

Kyle Alspach is a Senior Editor at CRN focused on cybersecurity. His coverage spans news, analysis and deep dives on the cybersecurity industry, with a focus on fast-growing segments such as cloud security, application security and identity security. He can be reached at kalspach@thechannelcompany.com.