Tenable Holdings to acquire CNAPP vendor Ermetic

Tenable Holdings has signed a definitive agreement to acquire Ermetic, a fully integrated cloud-native application protection platform – CNAPP – company, and a provider of cloud infrastructure entitlement management – CIEM -. Tenable intends to integrate these 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. Combining Ermetic’s insights into Tenable One will extend Tenable’s offerings for hybrid environments. Founded in 2019, Ermetic is a provider of CIEM and identity centric unified cloud security platform capabilities. Tenable will acquire Ermetic for approximately $240M in cash and $25M in restricted stock and RSUs. The acquisition is expected to close early in Q4, Tenable expects to fund the cash portion of the purchase price with existing cash. Ermetic’s financial results in Q4 are not expected to materially contribute to revenue or calculated current billings and are expected to increase non-GAAP operating expenses by $4M-$6M. Unlevered free cash flow in Q4 is expected to be reduced by $14M-$16M, which includes $10M-$12M of acquisition-related costs and forgone interest income.