ServiceNow Nears $7 Billion Acquisition Deal for Armis
ServiceNow is reportedly in advanced discussions to acquire Armis, an Israeli-founded cybersecurity firm, in a deal valued at approximately $7 billion. This information was disclosed by Bloomberg and indicates that an announcement could be made in the coming days. However, there is a possibility of negotiations falling through or other bidders entering the fray.
Latest Funding and Valuation
Just last month, Armis raised $435 million in a funding round, achieving a valuation of $6.1 billion. This funding round ranks among the largest private financings in the cybersecurity sector this year.
- Funding led by Growth Equity at Goldman Sachs Alternatives.
- Major participation from CapitalG.
- New investment from Evolution Equity Partners.
- Involvement of several existing investors.
Company Background
Founded in 2016 by CEO Yevgeny Dibrov and CTO Nadir Izrael, Armis specializes in cybersecurity technology aimed at securing critical infrastructure. Their solutions provide organizations with real-time visibility and protection across various digital environments, from local networks to the cloud.
Currently, Armis employs around 850 professionals across Israel and globally.
Revenue Goals and Market Strategy
In a recent interview, Dibrov stated the company aims to aggressively scale revenue with a target of reaching $1 billion in annual recurring revenue (ARR) within three years. He emphasized the importance of strong sales performance, noting that exceeding $500 million in ARR is essential to meet this goal.
Dibrov highlighted that Armis is focused on maintaining close customer relationships and expanding their product offerings. They recently enhanced their revenue from the acquisition of Silk Security, boosting sales from $600,000 to $40 million annually.
Positioning in the Cybersecurity Landscape
Dibrov expressed confidence in Armis’ competitive edge within the cybersecurity market. He mentioned the company competes against major players such as Claroty and Axonius, while also aiming to take on established firms like Rapid7 and Tenable.
Investor Insights
Goldman Sachs, which manages over $500 billion in alternative assets, is a crucial partner for Armis. Since 2003, Goldman Sachs has invested more than $13 billion through its Growth Equity fund, focusing on technology and growth-stage companies.
While discussions about a full sale of Armis were raised, Dibrov indicated that these offers weren’t seriously considered. Armis values the support of its board in fostering growth and innovation, aiming to align with partners who share their vision.
