IT security company Cyber-Ark Software Ltd. has raised $40 million in a financing round led by Goldman Sachs and Jerusalem Venture Partners (JVP). Part of the proceeds will go to the company and part to previous investors for their holdings. Sources inform ''Globes'' that the company value for the financing round was $200 million.
Cyber-Ark president CEO Udi Mokady and chairman Alon Cohen founded the company in 1999. It develops solutions for protecting applications and sensitive data against both internal and external threats, on the principle of a digital safe. The company's Privileged Identity Management, Sensitive Information Management and Privileged Session Management Suites, protect data and user access to it.
Cyber-Ark's growth has accelerated in recent years, and it will reportedly post $40-50 million revenue for 2011.
When the current financing round is closed, Cyber-Ark's shareholders will be JVP, Vertex Venture Capital, Goldman Sachs, JPMorgan Chase Partners, US-Israel fund Cabaret-ArbaOne, Softbank Ltd. affiliate Seed Capital Partners, and Nochi Dankner-controlld IDB Development Corp. Ltd. Alon Cohen will sell part of his stake in the company as part of the financing round and will vacate his position and be replaced by JVP managing partner Erel Margalit.
Gartner Group estimates the global IT security market at $17 billion in 2010. Aggressive consolidation in the computing industry, as part of the entry into cloud computing, has resulted in large companies controlling 40% of the market, leaving little room for new companies.
Cyber-Ark is trying to fit into this space, and, judging by JVP's confidence, some of its investors believe that the company will achieve substantial business.
Mokadi said, "The current financing round will enable us to consolidate our leadership in IT security and develop innovative products that will enable enterprises to improve their security against the internal and external threats they must deal with.
Goldman Sachs VP principal investments David Campbell said, "The quality of the company's customers and its products made it an attractive investment for us."
Published by Globes [online], Israel business news - www.globes-online.com - on December 21, 2011
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