Cyber Ark has announced that it has signed an agreement for a $40 million investment round led by Goldman Sachs and Jerusalem Venture Partners (JVP), one of Israel's most prominent venture capital funds.
This move will see the financial organisations acquire shares from existing shareholders and a provision of growth capital to the company.
As part of the round, JVP's founder and chairman Erel Margalit will be nominated as chairman of the company and David Campbell, a vice-president in the merchant banking division at Goldman Sachs, will join the board.
Following the round, Cyber Ark's main shareholders will include JVP, Goldman Sachs, Vertex Venture Capital and Cabaret-ArbaOne.
Campbell said: “We were attracted to Cyber Ark's leading technology solutions in the large and fast growing market of securing corporate cyber assets. Cyber Ark has significant customer traction with some of the world's largest enterprises and a history of producing cutting edge security software. The company's top-class management team has a strong track record of demonstrating consistent and profitable growth.”
Udi Mokady, president and CEO of Cyber Ark Software, said: “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.
“We look forward to leveraging this substantial investment to further expand and build on our market leadership and global presence in the privileged identity management space. In addition, we will drive continued innovation in enterprise class solutions to protect against advanced internal and external information security threat.”
“I'm both proud and excited about this transaction that will enable several of the company's longer-standing partners, including myself, to capitalise on many years of dedication towards building this company into a prominent security leader,” added Alon N. Cohen, co-founder and outgoing chairman of Cyber Ark Software.
“I strongly believe that as Cyber Ark transitions to its next phase of growth, JVP and Goldman Sachs will be best suited to lead the company in its continued global expansion.”