Cyber-Ark Software, a provider of enterprise security solutions that help companies secure and manage accounts, sessions, critical applications and data, this week announced that it has signed an agreement for a $40 million investment round led by Goldman Sachs and Jerusalem Venture Partners (JVP).
As part of the deal, some existing shareholders will be cashing out and selling shares, so the company will not receive all of the proceeds of the $40 million deal. Cyber-Ark did not disclose the amount it would receive in terms of net proceeds to the company.
With the proceeds that the company does receive, it plans to accelerate growth and increase its share in the Privileged Identity Management market, a segment within the Identity and Access Management market.
Cyber-Ark’s software helps customers defend against insider threats and advanced external threats. Its product suites are used by several cloud and hosting providers as part of their cloud fabric to secure their customers’ systems and data.
Newton, Massachusetts-based Cyber-Ark claims nearly 1000 enterprise customers worldwide, including 8 of the Top 10 global banks and more than 35 percent of the Fortune 100 companies.
As part of the transaction, JVP’s Founder and Chairman Erel Margalit will become Chairman of the company, replacing Co-Founder Alon Cohen. Additionally, David Campbell, a Vice President in the Merchant Banking Division at Goldman Sachs, will join the Board.
“We were attracted to Cyber-Ark’s leading technology solutions in the large and fast growing market of securing corporate cyber assets,” noted David Campbell. “Cyber-Ark has significant customer traction with some of the world’s largest enterprises and a history of producing cutting edge security software.”
“We are excited about the strong vote of confidence Cyber-Ark has received from JVP, as well as the opportunity to welcome the prominent global investment group, Goldman Sachs, into the company,” said Udi Mokady, President and CEO of Cyber-Ark Software.