CyberArk Acquires Zilla Security to Reshape Identity Governance and Administration for the Modern Enterprise

Industry-leading identity security combined with modern IGA sets a new paradigm for compliance and identity lifecycle management

CyberArk (NASDAQ: CYBR), the global leader in identity security, today announced it has acquired Zilla Security, a leader in modern Identity Governance and Administration (IGA) solutions. Zilla's innovative, AI-powered IGA capabilities will expand CyberArk's industry-leading Identity Security Platform with scalable automation that enables accelerated identity compliance and provisioning across digital environments, while maximizing security and operational efficiency. This acquisition further advances CyberArk's strategy to deliver the industry's most powerful, comprehensive identity security platform to secure every identity – human and machine – with the right level of privilege controls.

Under the terms of the agreement, CyberArk has acquired Zilla Security for an enterprise value of $165 million in cash and a $10 million earn-out tied to the achievement of certain milestones.

In the wake of digital transformation, organizations require scalable solutions that can seamlessly extend across hybrid environments. Legacy IGA was built primarily for on-premises environments, relying heavily on manual processes with slow, time-consuming deployments that leave organizations stalled and struggling to realize value from their investments. Modern IGA is purpose-built for the cloud with AI-driven business processes and out-of-the-box integrations for visibility across cloud and SaaS applications, enabling effective governance and lifecycle management.

In stark contrast to legacy IGA systems, Zilla's modern IGA SaaS platform was built from scratch to address today's digital environments, characterized by an explosion of SaaS applications, decentralized management, and identity-based security threats. Leveraging AI-driven role management, Zilla automates the processes of identity compliance and provisioning, making governance easy, intuitive and all-inclusive for the modern enterprise. It offers the most complete set of integrations for both commonly used and custom applications and provides fast time to value. Zilla customers experienced in implementing legacy IGA found that Zilla can be deployed five times faster; complete access reviews with 80% less effort; and enable faster provisioning with 60% fewer service tickets.

"As enterprises navigate the proliferation of privilege in complex identity landscapes, modern IGA capabilities become critical for protecting digital assets and maintaining business agility. 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," said Matt Cohen, Chief Executive Officer, CyberArk. "We're delighted to welcome Zilla's co-founders Deepak Taneja and Nitin Sonawane, along with their talented team, to CyberArk. Their experience and expertise in IGA are unparalleled and will be instrumental in helping us shape the future of modern IGA and identity security."

"What worked 20 years ago clearly doesn't work today," said Deepak Taneja, Chief Executive Officer and Co-Founder, Zilla Security. "Zilla represents a fundamental shift in how organizations can manage identity governance and administration. 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."

With the addition of Zilla, CyberArk will further expand the industry's most comprehensive AI-powered Identity Security Platform for humans and machines, including:

• Discovery and onboarding of all identities with context and risk mapping;
• Applying the right level of privilege controls across entitlement management, session management, credential management and authentication management; and
• Automated lifecycle management, policy, governance and compliance.

"Traditional IGA systems have not kept up with the needs of the modern enterprise," said Andy Walker, Vice President and General Manager, Technology Deployment Services, Optiv, a cyber advisory and solutions leader. "A unified approach to identity security that incorporates modern IGA capabilities into a single platform will be a tremendous benefit for CyberArk's customers. CyberArk's acquisition of Zilla will fill a critical gap that exists in the market today."

Zilla's modern IGA capabilities are now available from CyberArk as standalone offerings, including:

• Zilla Comply: Simplifies user access reviews and evidence documentation through robust integration and automation that supports the entire audit process, from app integration to the evidence package for auditors.
• Zilla Provisioning: Revolutionizes access management with an AI-driven, automated approach to provisioning tasks such as onboarding, role transitions and offboarding, while ensuring all identities receive job-appropriate entitlements and access.

About CyberArk

CyberArk (NASDAQ: CYBR) is the global leader in identity security, trusted by organizations around the world to secure human and machine identities in the modern enterprise. CyberArk's AI-powered Identity Security Platform applies intelligent privilege controls to every identity with continuous threat prevention, detection and response across the identity lifecycle. With CyberArk, organizations can reduce operational and security risks by enabling zero trust and least privilege with complete visibility, empowering all users and identities, including workforce, IT, developers and machines, to securely access any resource, located anywhere, from everywhere. Learn more at cyberark.com.

About Zilla Security

Zilla Security is the leading provider of modern identity governance and administration (IGA), providing a SaaS platform that automates the processes of identity compliance and provisioning. Zilla stands out for its speed to value, offering the most complete set of application integrations capabilities for both commonly used and custom applications. Zilla AI Profiles™ eliminates the tedious, nearly impossible process of creating and maintaining rules that define roles or groups. Through its automations, Zilla clients are able to deploy 5X faster, complete access reviews with 80% less effort, and enable faster provisioning with 60% fewer ITSM tickets. Zilla provides breakthrough IGA to over 100 customers. Learn more at zillasecurity.com.

Cautionary Language Concerning Forward-Looking Statements

This release contains forward-looking statements, which express the current beliefs and expectations of CyberArk's (the "Company") management. In some cases, forward-looking statements may be identified by terminology such as "believe," "may," "estimate," "continue," "anticipate," "intend," "should," "plan," "expect," "predict," "potential" or the negative of these terms or other similar expressions. Such statements involve a number of known and unknown risks and uncertainties that could cause the Company's future results, levels of activity, performance or achievements to differ materially from the results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include, but are not limited to: risks related to the Company's acquisitions of Venafi Holdings, Inc. ("Venafi") and Zilla Security Inc. ("Zilla"), including potential impacts on operating results; challenges in retaining and hiring key personnel and maintaining business; risks related to the successful integration of Venafi's or Zilla's operations and the ability to realize anticipated benefits of the combined operations; disruption of the current plans and operations of the Company and/or Zilla as a result of the announcement of the transaction, including risks of cyberattacks; changes to the drivers of the Company's growth and the Company's ability to adapt its solutions to the information security market changes and demands, including artificial intelligence ("AI"); the Company's ability to acquire new customers and maintain and expand the Company's revenues from existing customers; intense competition within the information security market; real or perceived security vulnerabilities, gaps, or cybersecurity breaches of the Company, or the Company's customers' or partners' systems, solutions or services; risks related to the Company's compliance with privacy, data protection and AI laws and regulations; the Company's ability to successfully operate its business as a subscription company and fluctuation in its quarterly results of operations; the Company's reliance on third-party cloud providers for its operations and software-as-a-service ("SaaS") solutions; the Company's ability to hire, train, retain and motivate qualified personnel; the Company's ability to effectively execute its sales and marketing strategies; the Company's ability to find, complete, fully integrate or achieve the expected benefits of additional strategic acquisitions; the Company's ability to maintain successful relationships with channel partners, or if the Company's channel partners fail to perform; risks related to sales made to government entities; prolonged economic uncertainties or downturns; the Company's history of incurring net losses, the Company's ability to generate sufficient revenue to achieve and sustain profitability and the Company's ability to generate cash flow from operating activities; regulatory and geopolitical risks associated with the Company's global sales and operations; risks related to intellectual property claims; fluctuations in currency exchange rates; the ability of the Company's products to help customers achieve and maintain compliance with government regulations or industry standards; the Company's ability to protect its proprietary technology and intellectual property rights; risks related to using third-party software, such as open-source software; risks related to stock price volatility or activist shareholders; any failure to retain the Company's "foreign private issuer" status or the risk that the Company may be classified, for U.S. federal income tax purposes, as a "passive foreign investment company"; changes in tax laws; the Company's expectation to not pay dividends on the Company's ordinary shares for the foreseeable future; risks related to the Company's incorporation and location in Israel, including wars and other hostilities in the Middle East; and other factors discussed under the heading "Risk Factors" in the Company's most recent annual report on Form 20-F filed with the Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

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Investor Relations Contact:

Srinivas Anantha, CFA

CyberArk

617-558-2132

[email protected]

Media Contact:

Rachel Gardner

CyberArk

+1 (603) 531 7229

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