CyberArk Announces Secondary Offering of Ordinary Shares

Rhea-AI Summary

CyberArk has announced a secondary public offering of 1,142,538 ordinary shares by Triton Seller, LP, an affiliate of Thoma Bravo funds. The offering is related to shares issued during CyberArk's acquisition of Venafi. BofA Securities is acting as the sole underwriter and book-running manager. The last reported share price was $327.57 on December 5, 2024.

The selling shareholder will receive all proceeds from the offering, with CyberArk not receiving any proceeds. The offering is being made through an effective shelf registration statement filed with the SEC on October 22, 2024.

Positive

• None.

Negative

• Company will not receive any proceeds from the share sale
• Secondary offering may create selling pressure on the stock
• Potential market dilution from 1,142,538 shares being offered

Insights

Financial Analyst

This secondary offering of 1,142,538 shares by Thoma Bravo is a significant market event, primarily impacting trading dynamics and ownership structure. At the last reported price of $327.57, the offering represents approximately $374 million in value. The transaction allows Thoma Bravo to monetize part of their position received from the Venafi acquisition without diluting existing shareholders, as no new shares are being issued. The timing and size of the offering suggest confidence in current market conditions and CyberArk's valuation.

The selection of BofA Securities as the sole book-runner indicates a controlled distribution process, likely targeting institutional investors. The flexible pricing mechanism through various transaction types should help maintain price stability during the distribution. For existing shareholders, while this creates temporary selling pressure, the orderly nature of the offering and strong institutional backing should minimize long-term price impact.

Market Research Analyst

The secondary offering's structure reveals important market dynamics for CyberArk. With shares trading near historical highs, the timing suggests Thoma Bravo sees an opportune moment for partial exit. The offering represents roughly 2.5% of CyberArk's market cap, a manageable size that shouldn't overwhelm market demand. The registration method using Form F-3 indicates a well-planned, efficient process leveraging CyberArk's seasoned issuer status.

The flexibility in distribution methods (Nasdaq, OTC, negotiated deals) provides multiple channels to place shares with quality institutional investors while managing price impact. This structured approach, combined with BofA's distribution capabilities, should help maintain market stability during the offering period. The transaction effectively balances Thoma Bravo's liquidity needs with market absorption capacity.

Offering Related to Ordinary Shares held by Thoma Bravo issued in conjunction with the close of CyberArk’s Acquisition of Venafi

NEWTON, Mass. & PETACH TIKVA, Israel--(BUSINESS WIRE)-- CyberArk (NASDAQ: CYBR) (the “Company” or “CyberArk”), a global leader in identity security, announced today that it has launched an underwritten secondary public offering (the “Offering”) by Triton Seller, LP (the “Selling Shareholder”), which is an affiliate of certain funds managed by Thoma Bravo, L.P., of 1,142,538 shares of the Company’s ordinary shares, par value NIS 0.01 per share (“Ordinary Shares”).

The Selling Shareholder will receive all of the proceeds from the Offering. The Company will not receive any proceeds from the sale of the Ordinary Shares being offered by the Selling Shareholder.

The last reported sale price of CyberArk’s Ordinary Shares on December 5, 2024 was $327.57 per share. BofA Securities, Inc. is acting as the underwriter and sole book-running manager.

The underwriter will offer the Ordinary Shares from time to time for sale in one or more transactions on the Nasdaq, in the over-the-counter market, through negotiated transactions or otherwise at market prices prevailing at the time of sale, at prices related to prevailing market prices or at negotiated prices.

The Offering is being made pursuant to an effective shelf registration statement on Form F-3 (including a prospectus) filed by the Company with the U.S. Securities and Exchange Commission (“SEC”) on October 22, 2024, to which this communication relates. Before you invest, you should read the prospectus in the shelf registration statement and other documents the Company has filed with the SEC for more complete information about the Company and the Offering. The Offering will be made only by means of a free writing prospectus, a prospectus and a related prospectus supplement relating to the Offering, copies of which may be obtained from BofA Securities, NC1-022-02-25, 201 North Tryon Street, Charlotte, NC, 28255-0001, Attn: Prospectus Department, by email at dg.prospectus_requests@bofa.com. A copy of the free writing prospectus, the prospectus and the related prospectus supplement relating to the Offering may also be obtained free of charge by visiting EDGAR on the SEC’s website at www.sec.gov.

This press release does not constitute an offer to sell or the solicitation of an offer to buy these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. Any offers, solicitations or offers to buy, or any sales of securities will be made in accordance with the registration requirements of the Securities Act of 1933, as amended.

About CyberArk

CyberArk (NASDAQ: CYBR) is the global leader in identity security. Centered on intelligent privilege controls, CyberArk provides the most comprehensive security offering for any identity – human or machine – across business applications, distributed workforces, hybrid cloud environments and throughout the DevOps lifecycle. The world’s leading organizations trust CyberArk to help secure their most critical assets. To learn more about CyberArk, visit https://www.cyberark.com.

Cautionary Note Concerning Forward Looking Statements

This release contains forward-looking statements, which express the current beliefs and expectations of the Company’s management. These statements are any statement contained herein that is not strictly historical, including, but not limited to, statements regarding the expected sale of Ordinary Shares by the Selling Shareholder in the Offering. In some cases, forward-looking statements may be identified by terminology such as “believe,” “may,” “estimate,” “continue,” “anticipate,” “intend,” “should,” “plan,” “expect,” “predict,” “potential” or the negative of these terms or other similar expressions. Such statements involve a number of known and unknown risks and uncertainties that could cause the Company’s future results, levels of activity, performance or achievements to differ materially from the results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Important factors that could cause or contribute to such differences include risks relating, but not limited to: risks related to the Company’s acquisition of Venafi Holdings, Inc. (“Venafi”), including impacts of the acquisition on the Company’s or Venafi’s operating results and business generally; the ability of the Company or Venafi to retain and hire key personnel and maintain relationships with customers, suppliers and others with whom the Company or Venafi do business; risks that Venafi’s business will not be integrated successfully into the Company’s operations; risks relating to the Company’s ability to realize anticipated benefits of the combined operations after the Venafi acquisition; changes to the drivers of the Company’s growth and the Company’s ability to adapt its solutions to the information security market changes and demands, including artificial intelligence (“AI”); the Company’s ability to acquire new customers and maintain and expand the Company’s revenues from existing customers; intense competition within the information security market; real or perceived security vulnerabilities, gaps, or cybersecurity breaches of the Company, or the Company’s customers’ or partners’ systems, solutions or services; risks related to the Company’s compliance with privacy, data protection and AI laws and regulations; the Company’s ability to successfully operate its business as a subscription company and fluctuation in the quarterly results of operations; the Company’s reliance on third-party cloud providers for its operations and software-as-a-service (“SaaS”) solutions; the Company’s ability to hire, train, retain and motivate qualified personnel; the Company’s ability to effectively execute its sales and marketing strategies; the Company’s ability to find, complete, fully integrate or achieve the expected benefits of additional strategic acquisitions; the Company’s ability to maintain successful relationships with channel partners, or if the Company’s channel partners fail to perform; risks related to sales made to government entities; prolonged economic uncertainties or downturns; the Company’s history of incurring net losses, the Company’s ability to generate sufficient revenue to achieve and sustain profitability and the Company’s ability to generate cash flow from operating activities; regulatory and geopolitical risks associated with the Company’s global sales and operations; risks related to intellectual property claims; fluctuations in currency exchange rates; the ability of the Company’s products to help customers achieve and maintain compliance with government regulations or industry standards; the Company’s ability to protect its proprietary technology and intellectual property rights; risks related to using third-party software, such as open-source software; risks related to stock price volatility or activist shareholders; any failure to retain the Company’s “foreign private issuer” status or the risk that the Company may be classified, for U.S. federal income tax purposes, as a “passive foreign investment company”; changes in tax laws; the Company’s expectation to not pay dividends on the Company’s ordinary shares for the foreseeable future; risks related to the Company’s incorporation and location in Israel, including the ongoing war between Israel and Hamas and conflict in the region; and other factors discussed under the heading “Risk Factors” in the Company’s most recent annual report on Form 20-F filed with the Securities and Exchange Commission. Forward-looking statements in this release are made pursuant to the safe harbor provisions contained in the U.S. Private Securities Litigation Reform Act of 1995. These forward-looking statements are made only as of the date hereof, and the Company undertakes no obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law.

View source version on businesswire.com: https://www.businesswire.com/news/home/20241205281226/en/

Investor Relations:

Srinivas Anantha, CFA

CyberArk

617-558-2132

ir@cyberark.com

Media:

Nick Bowman

CyberArk

+44 (0) 7841 673378

press@cyberark.com

Source: CyberArk

FAQ

How many shares are being offered in CyberArk's (CYBR) secondary offering?

Triton Seller, LP is offering 1,142,538 ordinary shares of CyberArk (CYBR) in the secondary public offering.

What was CyberArk's (CYBR) stock price when the secondary offering was announced?

CyberArk's (CYBR) last reported share price was $327.57 on December 5, 2024.

Who is the underwriter for CyberArk's (CYBR) secondary offering?

BofA Securities is acting as the sole underwriter and book-running manager for the offering.

Will CyberArk (CYBR) receive any proceeds from the secondary offering?

No, CyberArk (CYBR) will not receive any proceeds from the offering. All proceeds will go to the selling shareholder, Triton Seller, LP.