US enterprise software program firm ServiceNow (NYSE: NOW) introduced as we speak that it’s buying Israeli cybersecurity firm Armis for $7.75 billion in money. This is without doubt one of the greatest cybersecurity offers signed in Israel lately and the fourth greatest ever. “Globes” understands that along with the cost, the deal consists of bonuses value lots of 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 offers software program for administration and automation of human sources and data methods in enterprises. It has turn into a dominant platform for administration of labor processes. Its market cap is nearly $180 billion. In recent times, ServiceNow has been working to develop its actions past the normal IT worlds, into the areas of danger administration, information safety and demanding asset operations. The acquisition of Armis is a part of this course of and in addition marks the corporate’s first vital entry into Israel.
Rejected acquisition gives prior to now
Armis was based in 2015 by Yevgeny Dibrov and Nadir Izrael, who met throughout their navy service in Unit 81. The corporate operates within the area of cybersecurity publicity administration and demanding infrastructure safety, however not like conventional information safety options, which focus primarily on computing methods, Armis has constructed an answer that gives organizations with an entire image of their complete assault floor, together with IT methods, operational applied sciences (OT), medical units, IoT and industrial methods.
The corporate’s clients embrace manufacturing vegetation, vitality firms, airways, hospitals and federal companies 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 as we speak it serves dozens of Fortune 100 firms, in addition to authorities companies and safety organizations. In recent times, 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 additionally a transparent order of priorities for addressing them – an space through which it competes immediately with established gamers reminiscent of 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 buyers 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 buyers. The funding allowed the corporate to reject different funding and acquisition gives, together with a bid to accumulate 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 unbiased 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 not too long ago crossed the brink of $340 million in annual recurring income (ARR), with a progress charge of over 50% per yr, and presently employs 850 folks worldwide. These figures have made it one of many largest cybersecurity firms in Israel by way of worth, and a serious participant within the world enviornment.
The massive 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 predicted to yield the fund a return of billions of {dollars} – one in all its flagship investments lately.
Past the monetary facet, the deal additionally highlights a broader pattern available in the market: rising consolidation within the cybersecurity trade, on account of a pointy escalation in threats, the growth of AI use and a deepening consciousness by organizations that information safety can now not be managed as a degree resolution, however somewhat as an integral a part of your complete enterprise operation.
In accordance with ServiceNow’s official announcement, the acquisition of Armis is meant to develop and broaden the corporate’s safety capabilities throughout your complete organizational assault floor – from IT methods to operational applied sciences, medical units and bodily infrastructure. The corporate notes that the mixture 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 develop 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 information safety, particularly in organizations that personal vital infrastructure.
Printed by Globes, Israel enterprise information – en.globes.co.il – on December 23, 2025.
© Copyright of Globes Writer Itonut (1983) Ltd., 2025.
