Armis announced that Insight Partners has agreed to acquire the company for cash at a current valuation of USD 1.1 Billion. CapitalG has contributed USD 100 Million and other existing stockholders. The company will continue to operate self-sufficiently and managed by the two co-founders, Nadir Izrael, CTO, Yevgeny Dibrox, CEO and the executive team with aid from Insight’s business strategy and ScaleUp division, Onsite. The acquisition is expected to close in February and may be subject to specific conditions and approvals.
“Insight is one of the most sophisticated software investors in the sector, and it is due to the depth of their domain expertise that they really understand the enterprise IoT device challenge we are looking to solve, and the size of the market opportunity. We considered growth rounds and strategic offers, but by partnering with Insight we have the best of both worlds – operational support and independence, both of which were important in our decision to take on a scaleup partner this early in our company journey,” said Yevgeny Dibrov, co-founder and CEO at Armis. “We are thankful for the support we received from our investors at Sequoia, Tenaya, Bain, and Red Dot; and we, as well as the whole Armis team, are very excited to have Insight working alongside us as we enter this next phase, accelerating our platform and growth.”
World leading research and advisory company Gartner, Inc. (NYSE: IT) has anticipated a total of 25 billion connected devices by 2021. Representing a demand for security for businesses and common consumers alike. Cyber-attacks in 2019 were up 300%. Armis reported that by 2021 that nearly 90% of all devices will be unsecured and vulnerable to attack. “One of the biggest challenges keeping CIOs and CISOs up at night is how to secure the unmanaged devices proliferating through their businesses, from manufacturing floors to hospital rooms, from airports to boardrooms. These devices – capturing and creating business critical information, working on production lines, or administering patient care – have no protection and they need a security solution,” said Nadir Izrael, CTO and co-founder at Armis. “The exponential growth of Armis to date illustrates just how critical securing unmanaged devices is for businesses. With the backing of Insight, we will continue to expand our world class technology to help identify devices, track their behavior and respond to the threats that target them.”
Teddie Wardi, Managing Director at Insight, said, “The strength of Israeli security software is unquestionable, and we are thrilled to be the scaleup partner Armis has selected to continue their explosive growth journey. We’ve spoken with their users who have told us how powerful the Armis platform is at device discovery, classification, and continuous threat assessment. In a world of unmanaged devices, Armis’ technology is a game changer.”
“Armis is the largest Israeli Cybersecurity acquisition of a private company ever and this is an important milestone in the Armis journey, building a substantial stand-alone Cybersecurity power-house,” said Gili Raanan Chairman of Armis and General Partner at Sequoia Israel and Cyberstarts.