Exposure management solutions provider Tenable announced on Thursday that it has entered into a definitive agreement to acquire Israeli cloud security startup Ermetic for roughly $240 million in cash and $25 million in restricted stock and restricted stock units (RSUs).
Rumors of the acquisition emerged a few days ago, putting the deal at an estimated $300-$350 million.
The deal is expected to close in Q4 2023 and Tenable expects to fund the cash portion of the acquisition price with existing cash.
Ermetic provides a cloud-native application protection platform (CNAPP) and a cloud infrastructure entitlement management (CIEM) solution.
Tenable plans on using Ermetic solutions to boost the capabilities of its Tenable One exposure management platform, which includes vulnerability management, web app security, cloud security, identity security, attack surface management, and OT security capabilities.
Ermetic has raised $100 million since it was launched in 2019 and its customers include Fortune 50 companies.
“The combination of Tenable’s rich exposure management data and Ermetic’s cloud solutions will provide unprecedented levels of actionable visibility and value. It will remove the complexity that makes managing cloud environments so challenging,” said Shai Morag, CEO and co-founder of Ermetic.
“Tenable’s massive install base of customers will enable us to introduce more organizations to the benefits of context-aware risk prioritization to solve problems before they manifest,” Morag added.
Data from SecurityWeek’s cybersecurity M&A database shows that 17 of the more than 300 deals announced to date in 2023 involved cloud security companies.