US enterprise software program firm ServiceNow (NYSE: NOW) introduced at present that it’s buying Israeli cybersecurity firm Armis for $7.75 billion in money. This is among the greatest cybersecurity offers signed in Israel in recent times and the fourth greatest ever. “Globes” understands that along with the fee, the deal consists of bonuses price a whole lot of thousands and thousands of {dollars} to Armis staff to remain of their jobs, which takes the worth of the general deal over $8 billion.
ServiceNow gives software program for administration and automation of human sources and data techniques in enterprises. It has develop into a dominant platform for administration of labor processes. Its market cap is nearly $180 billion. In recent times, ServiceNow has been working to increase its actions past the normal IT worlds, into the areas of threat administration, information safety and demanding asset operations. The acquisition of Armis is a part of this course of and likewise marks the corporate’s first vital entry into Israel.
Rejected acquisition presents previously
Armis was based in 2015 by Yevgeny Dibrov and Nadir Izrael, who met throughout their army service in Unit 81. The corporate operates within the subject of cybersecurity publicity administration and demanding infrastructure safety, however not like conventional information safety options, which focus primarily on computing techniques, Armis has constructed an answer that gives organizations with a whole image of their total assault floor, together with IT techniques, operational applied sciences (OT), medical gadgets, IoT and industrial techniques.
The corporate’s clients embrace manufacturing vegetation, vitality corporations, airways, hospitals and federal businesses within the US, amongst others, organizations the place an operational disruption might rapidly flip right into a nationwide or financial disaster. Over time, Armis’s actions have expanded to incorporate giant organizations, and at present it serves dozens of Fortune 100 corporations, in addition to authorities businesses and safety organizations. In recent times, Armis has expanded its actions past figuring out and monitoring property, into the sector of managing and prioritizing the restore of cybersecurity vulnerabilities.
This course of was accelerated by the acquisition of Israeli firm Silk Safety final 12 months for about $150 million. The acquisition allowed Armis to supply organizations not solely identification of vulnerabilities, but additionally a transparent order of priorities for addressing them – an space by which it competes immediately with established gamers reminiscent of Tenable and Qualys.
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Armis raises $435m at $6.1b valuation
Final month, Armis accomplished a $435 million financing spherical, which was described as a pre-IPO funding, at an organization valuation of $6.1 billion. The spherical was led by Goldman Sachs Progress Fund, alongside present buyers together with Perception Companions, CapitalG, Brookfield, Georgian, GSquared and Israel’s Evolution Fund.
A few of the capital was put into the corporate’s coffers and a few was used to purchase shares in a secondary spherical, which allowed liquidity for workers and early buyers. The funding allowed the corporate to reject different funding and acquisition presents, together with a bid to amass management at an estimated worth of $5 billion from Thoma Bravo. On the time, the founders made it clear that they meant to proceed as an impartial firm and put together for an IPO between late 2026 and early 2027, a purpose that’s now being changed by a full exit.
The corporate just lately crossed the brink of $340 million in annual recurring income (ARR), with a development charge of over 50% per 12 months, and presently employs 850 folks worldwide. These figures have made it one of many largest cybersecurity corporations in Israel by way of worth, and a serious participant within the world enviornment.
The large winner
The largest winner from the deal is the US enterprise capital and personal fairness fund Perception Companions, which acquired management of Armis in 2020 at a price of roughly $1.1 billion. Since then, the corporate’s worth has jumped greater than fivefold, and the present deal is anticipated to yield the fund a return of billions of {dollars} – one among its flagship investments in recent times.
Past the monetary side, the deal additionally highlights a broader development out there: growing consolidation within the cybersecurity trade, resulting from a pointy escalation in threats, the growth of AI use and a deepening consciousness by organizations that information safety can not be managed as a degree resolution, however quite as an integral a part of the complete enterprise operation.
In accordance with ServiceNow’s official announcement, the acquisition of Armis is meant to increase and broaden the corporate’s safety capabilities throughout the complete organizational assault floor – from IT techniques to operational applied sciences, medical gadgets and bodily infrastructure. The corporate notes that the mixture of its AI platform and Armis’s detection, publicity administration and threat prioritization capabilities is meant to allow organizations to transition to proactive cybersecurity administration, based mostly on automation and AI, on a big scale. ServiceNow additionally famous that the transfer will considerably increase its actions in safety and threat, and greater than triple its market potential on this space. Past the enterprise side, the deal displays a broader development of accelerating integration between organizational course of administration and information safety, particularly in organizations that personal crucial infrastructure.
Revealed by Globes, Israel enterprise information – en.globes.co.il – on December 23, 2025.
© Copyright of Globes Writer Itonut (1983) Ltd., 2025.
