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In 2024 Cyberark had $1 billion in revenue. Can anyone comment on how this $25B number makes sense for Palo Alto?
If anything, this might make us stick with PA longer as they are the "niche" in our environment and presumably we will want to combine the contracts.
In 2024 Cyberark had $1 billion in revenue. Can anyone comment on how this $25B number makes sense for Palo Alto?
2. Large shared customer base,
3. Most enterprises need Identity SPM which Cyberark does pretty well at.
4. Vendor Rationalization is the name of the game. Security teams want to reduce spend significantly in both headcount and tooling, so PANW aquiriring Cyberark makes it easier to defend identity, cloud, networking, and other security spend as well as displace competitors. This is why platformization is becoming so popular.
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Earlier quoted context omitted.
Sure, Palo Alto can acquire Cyberark and then use its sales organization to up-sell its customers on CyberArk's offering. I've seen this at Microsoft where acquiring startups that provide capabilities and then incorporating them into Azure or Defender led to the usage of those capabilities skyrocketing and those particular acquisitions (not going to specifics because NDA) ended up being profitable.
I would sort of naively imagine that that would work at a smaller price tag but at $25 billion it would be tough to make it pencil out.
1. These synergies are hard to deliver, let alone 25x.
2. Paying 25x revenue implies you're forecasting way more (+30x?) in value.
In 2024 Cyberark had $1 billion in revenue. Can anyone comment on how this $25B number makes sense for Palo Alto?
Sure, Palo Alto can acquire Cyberark and then use its sales organization to up-sell its customers on CyberArk's offering. I've seen this at Microsoft where acquiring startups that provide capabilities and then incorporating them into Azure or Defender led to the usage of those capabilities skyrocketing and those particular acquisitions (not going to specifics because NDA) ended up being profitable.
That’s illegal of course but we stopped enforcing those laws somewhere in the early 2000s so here we are.
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Thank you for the heads up, I just uninstalled that app. I had it from 1 or 2 years ago and havent used it since. I feel like I'm being proven right that when selecting software, it should be open source and hosted on-site. Even if this causes problems, the alternative seems riskier.
In surprise news, Israelis in the tech industry have deep roots in Israeli military intelligence.