Tenable announced an agreement to acquire cloud-security company Ermetic on September 7, 2023, for approximately $265 million. The transaction closed on October 2, 2023. The announced price comprised approximately $240 million in cash and $25 million in restricted stock and restricted stock units (RSUs), subject to customary purchase-price adjustments.
Did Tenable acquire Ermetic?
Yes. Tenable announced the agreement on September 7, 2023, and said the acquisition was complete on October 2, 2023. The agreement named Tenable Holdings, Inc. as buyer and its wholly owned subsidiary Tenable, Inc. as purchaser of Ermetic Ltd., an Israeli company. Tenable’s SEC Form 8-K records the agreement; Tenable’s closing announcement confirms completion.
How much did Tenable pay for Ermetic?
The announced approximate purchase price was $265 million: about $240 million in cash and $25 million in Tenable restricted stock and RSUs. The SEC filing says the amount was subject to customary purchase-price adjustments, so $265 million describes the announced approximate consideration, not necessarily the exact final accounting purchase consideration.
What did Ermetic do?
Tenable described Ermetic as a cloud-native application protection platform (CNAPP) company and a leading cloud infrastructure entitlement management (CIEM) provider. In practical terms, those capabilities concern protecting cloud applications and infrastructure, as well as understanding and managing permissions granted to identities in cloud environments. The CNAPP and CIEM descriptions here reflect Tenable’s characterization of the company.
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Why did Tenable want the acquisition?
Tenable said Ermetic’s capabilities would expand Tenable One and Tenable Cloud Security. Its stated aim was to help customers see, prioritize, and remediate risk across infrastructure and identities in both on-premises and cloud environments. That was Tenable’s announced product strategy, not independent evidence that the integration achieved those outcomes.
In the October 2 closing release, Tenable chairman and CEO Amit Yoran described the expected benefits this way: “The unique combination of Tenable and Ermetic will give customers tightly integrated CNAPP capabilities for cloud environments, delivered through an elegant user experience that minimizes complexity and speeds adoption.” This is the company’s forecast of customer benefits; the cited release does not establish them as measured results.
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What the deal terms and announcements establish
- The agreement was announced September 7, 2023, and the acquisition closed October 2, 2023.
- The announced approximate consideration was $265 million, split between cash and restricted stock and RSUs, with customary adjustments possible.
- Ermetic added CNAPP and CIEM expertise, as Tenable described it, to a deal intended to strengthen Tenable’s cloud-security portfolio.
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