Tenable to acquire Ermetic for $240 million in cash and $25 million in restricted stock and RSUs

Tenable Holdings has signed a definitive agreement to acquire Ermetic. Tenable intends to integrate Ermetic’s capabilities into its Tenable One Exposure Management Platform to deliver contextual risk visibility, prioritization, and remediation across infrastructure and identities, both on-premise and in the cloud.

Ermetic’s CNAPP delivers in-depth contextual analysis in simple terms and reveals toxic combinations, such as privileged access to publicly-exposed vulnerable workloads. Combining Ermetic’s insights into Tenable One will extend Tenable’s offerings for hybrid environments.

In the public cloud, identities, and entitlements are the greatest risk to cloud infrastructures and one of the hardest problems to solve. In fact, according to the 2022 Top Cloud Threats report by the Cloud Security Alliance, security experts cite identity-based threats as the top cloud security issue they face. Cloud complexity – including identity sprawl and layers of policies that often change – makes understanding access risk and permissions difficult.

Expanding Tenable’s cloud security offering with Ermetic’s unified, multi-cloud CNAPP and CIEM will give security teams context and prioritization guidance to make efficient and accurate remediation decisions.

The user interface will make it easy for security professionals of all cloud expertise levels to spot and address risks. This approach solves a key industry challenge – managing an increasing volume of security data while contending with a massive skills gap in cybersecurity.

With remediation instructions provided, security teams will no longer need to be cloud security experts to understand where the most urgent risks exist and what to do about them.

“We will have an opportunity to put additional market-leading cloud security capabilities into the hands of tens of thousands of customers,” said Amit Yoran, CEO, Tenable. “Together, we will be able to deliver a holistic view of the modern attack surface and help organizations reduce exposure and risk, using identity as an essential foundation.”

The unique combination of Tenable and Ermetic will give customers:

• Unified CNAPP – a unified and agentless solution that automates asset discovery, risk analysis, accelerated remediation and compliance. From shift-left Infrastructure as Code security to agent-based and agentless assessment for runtime environments, broad CNAPP capabilities will be delivered via an elegant user experience that minimizes complexity and speeds adoption.
• Powerful CIEM – a comprehensive solution for managing human and service identities for cloud infrastructure. It visualizes all identities and entitlements, using automated analysis to reveal and prioritize risks.
• Context-aware risk prioritization – context across all cloud and on-premises resources, including workloads, identities and data. Enhanced exposure management will extend visibility across the hybrid, multi-cloud attack surface.
• Simplified remediation – guidance on and automation of the remediation process that enables organizations to make rapid improvements in their security posture.

“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, 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.”

Under the terms of the agreement, Tenable will acquire Ermetic for approximately $240 million in cash and $25 million in restricted stock and RSUs, subject to customary purchase price adjustments. The acquisition is expected to close early in the fourth quarter 2023, subject to customary closing conditions. Tenable expects to fund the cash portion of the purchase price with existing cash.