Cyber-Ark Announces $40 Million Financing

NEWTON, Mass. - December 21, 2011 - Cyber-Ark' Software, a leading global information security provider for protecting and managing privileged accounts and sessions, critical applications and sensitive information, today announced that it has signed an agreement for a $40 million investment round led by Goldman Sachs (NYSE: GS) and Jerusalem Venture Partners (JVP). The transaction includes the purchase of shares from existing shareholders, as well as the provision of growth capital for the company. As part of the round, JVP’s Founder and Chairman Erel Margalit will be nominated Chairman of the Company and David Campbell, a Vice President in the Merchant Banking Division at Goldman Sachs, will join the Board.

Cyber-Ark will use the proceeds to further accelerate growth, while capitalizing on its position as a market leader in Privileged Identity Management, one of the fastest growing segments within the $4 billion Identity and Access Management market1. In both traditional data centers and in the cloud, managing access to accounts and data is at the core of delivering system security and trust. Following the round, Cyber-Ark's main shareholders will include JVP, Goldman Sachs, Vertex Venture Capital and Cabaret-ArbaOne.

"As one of the Company's longest-standing investors, we are strong believers in building large international companies," commented Gadi Tirosh, General Partner at JVP. "Cyber-Ark has grown and evolved substantially over the past decade and, as it reaches this inflection point, we look forward to now taking it to the next level working together with our new partner Goldman Sachs and the company's management.”

“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. The Company’s top class management team has a strong track record of demonstrating consistent and profitable growth.”

In recent years, Cyber-Ark has experienced significant customer growth, expanding to nearly 1000 enterprise customers worldwide, including 8 of the Top 10 global banks and more than 35 percent of the Fortune 100 companies. Cyber-Ark’s solutions enable its customers to proactively protect their organizations against insider threats and advanced external threats. Cyber-Ark’s award winning product suites have also been selected by large cloud and hosting providers as part of their standard cloud fabric to secure their customers’ systems and data. In addition to growing its customer base, Cyber-Ark presented strong sequential revenue growth throughout 2011, generating a healthy cash flow and continued profitability – with increasing contribution from its 100 global channel partners.

“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 threats,” concluded Udi Mokady, President and CEO of Cyber-Ark Software.

“As Cyber-Ark’s co-Founder, I’m both proud and excited about this transaction that will enable several of the company's longer standing partners, including myself, to capitalize on many years of dedication towards building this company into a prominent security leader. 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,” added Alon N. Cohen, Co-Founder and outgoing Chairman of Cyber-Ark Software.

1 – IDC, Worldwide Identity and Access Management 2011–2015 Forecast: The Three Cs — Cooperation, Collaboration, and Commitment — Are Key for Identity-Driven Cloud, Doc # 228914, June 2011

About Cyber-Ark

Cyber-Ark' Software is a global information security company that specializes in protecting and managing privileged users, sessions, applications and sensitive information to improve compliance, productivity and protect organizations against insider threats and advanced external threats. With its award-winning Privileged Identity Management, Sensitive Information Management and Privileged Session Management Suites, organizations can more effectively manage and govern data center access and activities, whether on-premise, off-premise or in the cloud, while demonstrating returns on security investments. Cyber-Ark works with nearly 1000 customers, including more than 35 percent of the Fortune 100. Headquartered in Newton, Mass., Cyber-Ark has offices and authorized partners in North America, Europe and Asia Pacific. For more information, please visit www.cyber-ark.com.

About JVP

JVP is one of Israel's most prominent venture capital funds. Established eighteen years ago and with over $900 million dollars under management through eight funds, JVP has orchestrated twenty three of the largest exits out of Israel. The Fund's most recent exit, in portfolio company QLIK Technologies (NASDAQ: QLIK, $2.6bn mkt. cap.) was one of the most noted technology IPOs of the last decade. JVP is headquartered in the JVP Media Quarter in Jerusalem, home to 12 of JVP's portfolio companies and the Fund's early stage incubator, JVP Media Labs which invests in early stage media companies targeting fields such as: Web, mobile, advertising, gaming as well as enterprise software. The JVP Media Quarter is also home JVP's Community activities: Zappa Jerusalem in The Lab, the Center for Performing Arts, and "Bakehila" the youth empowerment program supporting 3,000 youngsters in 5 underprivileged Jerusalem neighborhoods. For additional information on JVP please visit: http://www.jvpvc.com

About Goldman Sachs

The Goldman Sachs Group, Inc. is a leading global investment banking, securities and investment management firm that provides a wide range of financial services to a substantial and diversified client base that includes corporations, financial institutions, governments and high-net-worth individuals. Founded in 1869, the firm is headquartered in New York and maintains offices in all major financial centers aro