CyberArk acquires Zilla Security in $175 million deal

The acquisition occurs during a period of strong financial performance for CyberArk.

Identity security giant CyberArk has acquired Boston-based Zilla Security, a cloud-native identity governance and administration startup, in a deal worth up to $175 million.

The acquisition, announced Thursday, includes $165 million in cash and a $10 million earn-out contingent on performance milestones. Zilla’s co-founders, CEO Deepak Taneja and Nitin Sonawane, along with their team, will join CyberArk. Zilla’s flagship products — Zilla Comply and Zilla Provisioning — will be integrated into CyberArk’s Identity Security Platform as standalone offerings.

Founded in 1999, CyberArk has traditionally built its reputation on securing privileged access across enterprise systems. In recent years, the company has bolstered its portfolio through a series of acquisitions, the most significant being the $1.54 billion purchase of machine identity firm Venafi last year. Together with this latest move, CyberArk seeks to expand its reach into modern identity security — an area increasingly critical as organizations shift toward hybrid and cloud-based environments.

Zilla Security, established in 2019 and also based in Boston, offers a cloud-native solution that emphasizes automation and artificial intelligence. The platform is designed to address the challenges posed by legacy identity systems, which were built primarily for on-premises infrastructure. In contrast, Zilla’s automated processes aim to simplify identity compliance and provisioning.

“What worked 20 years ago clearly doesn’t work today,” Taneja said in a release. “Zilla represents a fundamental shift in how organizations can manage identity governance and administration (IGA). By harnessing the power of AI, we’ve automated IGA, making it simpler, faster and more cost-effective. And now with CyberArk, we’ll be offering our breakthrough technology as part of the broader CyberArk Identity Security Platform, reaching many more customers on a global level.”

CyberArk CEO Matt Cohen emphasized that the addition of Zilla’s technology reflects an industry-wide need. 

“By expanding the CyberArk Identity Security Platform with Zilla’s modern IGA capabilities, we will reshape identity governance with scalable automation that delivers compliance and helps maximize security for the modern enterprise,” Cohen said in the release.

The acquisition occurs during a period of strong financial performance for CyberArk. Since its NASDAQ debut in 2014, the company’s shares have grown more than 1,000% from the IPO price. Recent quarterly results reported a 41% year-over-year revenue increase, with subscription revenue climbing 62% and annual recurring revenue topping $1 billion.

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