ServiceNow buys Israeli cybersecurity co Armis for $7.75b
US enterprise software program firm ServiceNow (NYSE: NOW) introduced at this time 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 in recent times and the fourth largest ever. “Globes” understands that along with the cost, the deal consists of bonuses price lots of of hundreds of 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 change 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 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 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 important infrastructure safety, however in contrast to conventional information safety options, which focus primarily on computing techniques, Armis has constructed an answer that gives organizations with an entire image of their whole assault floor, together with IT techniques, operational applied sciences (OT), medical units, IoT and industrial techniques.
The corporate’s prospects embody manufacturing crops, vitality firms, 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. Through the years, Armis’s actions have expanded to incorporate giant organizations, and at this time it serves dozens of Fortune 100 firms, in addition to authorities businesses and safety organizations. In recent times, Armis has expanded its actions past figuring out and monitoring property, 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 during which it competes immediately with established gamers comparable 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 Development Fund, alongside current traders 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 traders. 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 supposed 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 lately crossed the brink of $340 million in annual recurring income (ARR), with a development charge of over 50% per yr, and at the moment employs 850 individuals worldwide. These figures have made it one of many largest cybersecurity firms in Israel by way of worth, and a serious participant within the international enviornment.
The massive 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 worth 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 in recent times.
Past the monetary side, the deal additionally highlights a broader development available in the market: rising consolidation within the cybersecurity business, attributable to 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 some extent answer, however fairly as an integral a part of all the enterprise operation.
In line with ServiceNow’s official announcement, the acquisition of Armis is meant to develop and broaden the corporate’s safety capabilities throughout all the organizational assault floor – from IT techniques 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 side, the deal displays a broader development of accelerating integration between organizational course of administration and information safety, particularly in organizations that personal important infrastructure.
Revealed by Globes, Israel enterprise information – en.globes.co.il – on December 23, 2025.
© Copyright of Globes Writer Itonut (1983) Ltd., 2025.
