US enterprise software program firm ServiceNow (NYSE: NOW) introduced right this moment that it’s buying Israeli cybersecurity firm Armis for $7.75 billion in money. This is without doubt one of the largest cybersecurity offers signed in Israel lately and the fourth largest ever. “Globes” understands that along with the fee, the deal consists of bonuses value a whole bunch of tens of millions of {dollars} to Armis workers 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 knowledge programs in enterprises. It has change into a dominant platform for administration of labor processes. Its market cap is sort of $180 billion. Lately, ServiceNow has been working to broaden its actions past the standard IT worlds, into the areas of danger administration, knowledge safety and important asset operations. The acquisition of Armis is a part of this course of and likewise marks the corporate’s first important entry into Israel.
Rejected acquisition affords up to now
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 discipline of cybersecurity publicity administration and important infrastructure safety, however not like conventional knowledge safety options, which focus primarily on computing programs, Armis has constructed an answer that gives organizations with a whole image of their total assault floor, together with IT programs, operational applied sciences (OT), medical gadgets, IoT and industrial programs.
The corporate’s prospects embrace manufacturing crops, vitality corporations, airways, hospitals and federal businesses within the US, amongst others, organizations the place an operational disruption might shortly flip right into a nationwide or financial disaster. Over time, Armis’s actions have expanded to incorporate massive organizations, and right this moment it serves dozens of Fortune 100 corporations, in addition to authorities businesses and safety organizations. Lately, Armis has expanded its actions past figuring out and monitoring belongings, into the sphere of managing and prioritizing the restore of cybersecurity vulnerabilities.
This course of was accelerated by the acquisition of Israeli firm Silk Safety final yr for about $150 million. The acquisition allowed Armis to supply organizations not solely identification of vulnerabilities, but in addition a transparent order of priorities for addressing them – an space through which it competes immediately with established gamers corresponding to Tenable and Qualys.
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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 current traders together with Perception Companions, CapitalG, Brookfield, Georgian, GSquared and Israel’s Evolution Fund.
Among 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 traders. The funding allowed the corporate to reject different funding and acquisition affords, 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 supposed to proceed as an impartial firm and put together for an IPO between late 2026 and early 2027, a objective that’s now being changed by a full exit.
The corporate just lately crossed the edge of $340 million in annual recurring income (ARR), with a development price of over 50% per yr, 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 international area.
The large winner
The most important 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 predicted to yield the fund a return of billions of {dollars} – considered one of its flagship investments lately.
Past the monetary facet, the deal additionally highlights a broader pattern available in the market: growing consolidation within the cybersecurity business, on account of a pointy escalation in threats, the growth of AI use and a deepening consciousness by organizations that knowledge safety can now not be managed as a degree answer, however slightly as an integral a part of the whole enterprise operation.
In accordance with ServiceNow’s official announcement, the acquisition of Armis is meant to broaden and broaden the corporate’s safety capabilities throughout the whole organizational assault floor – from IT programs to operational applied sciences, medical gadgets and bodily infrastructure. The corporate notes that the mix of its AI platform and Armis’s detection, publicity administration and danger 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 broaden its actions in safety and danger, and greater than triple its market potential on this space. Past the enterprise facet, the deal displays a broader pattern of accelerating integration between organizational course of administration and knowledge 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.
