US enterprise software company ServiceNow (NYSE: NOW) announced today that it is acquiring Israeli cybersecurity company Armis for $7.75 billion in cash. This is one of the biggest cybersecurity deals signed in Israel in recent years and the fourth biggest ever. “Globes” understands that in addition to the payment, the deal includes bonuses worth hundreds of millions of dollars to Armis employees to stay in their jobs, which takes the value of the overall deal over $8 billion.
ServiceNow provides software for management and automation of human resources and information systems in enterprises. It has become a dominant platform for management of work processes. Its market cap is almost $180 billion. In recent years, ServiceNow has been working to expand its activities beyond the traditional IT worlds, into the areas of risk management, data security and critical asset operations. The acquisition of Armis is part of this process and also marks the company’s first significant entry into Israel.
Rejected acquisition offers in the past
Armis was founded in 2015 by Yevgeny Dibrov and Nadir Izrael, who met during their military service in Unit 81. The company operates in the field of cybersecurity exposure management and critical infrastructure security, but unlike traditional data security solutions, which focus mainly on computing systems, Armis has built a solution that provides organizations with a complete picture of their entire attack surface, including IT systems, operational technologies (OT), medical devices, IoT and industrial systems.
The company’s customers include manufacturing plants, energy companies, airlines, hospitals and federal agencies in the US, among others, organizations where an operational disruption could quickly turn into a national or economic crisis. Over the years, Armis’s activities have expanded to include large organizations, and today it serves dozens of Fortune 100 companies, as well as government agencies and security organizations. In recent years, Armis has expanded its activities beyond identifying and monitoring assets, into the field of managing and prioritizing the repair of cybersecurity vulnerabilities.
This process was accelerated by the acquisition of Israeli company Silk Security last year for about $150 million. The acquisition allowed Armis to offer organizations not only identification of vulnerabilities, but also a clear order of priorities for addressing them – an area in which it competes directly with established players such as Tenable and Qualys.
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Armis raises $435m at $6.1b valuation
Last month, Armis completed a $435 million financing round, which was described as a pre-IPO funding, at a company valuation of $6.1 billion. The round was led by Goldman Sachs Growth Fund, alongside existing investors including Insight Partners, CapitalG, Brookfield, Georgian, GSquared and Israel’s Evolution Fund.
Some of the capital was put into the company’s coffers and some was used to buy shares in a secondary round, which allowed liquidity for employees and early investors. The funding allowed the company to reject other investment and acquisition offers, including a bid to acquire control at an estimated value of $5 billion from Thoma Bravo. At the time, the founders made it clear that they intended to continue as an independent company and prepare for an IPO between late 2026 and early 2027, a goal that is now being replaced by a full exit.
The company recently crossed the threshold of $340 million in annual recurring revenue (ARR), with a growth rate of over 50% per year, and currently employs 850 people worldwide. These figures have made it one of the largest cybersecurity companies in Israel in terms of value, and a major player in the global arena.
The big winner
The biggest winner from the deal is the US venture capital and private equity fund Insight Partners, which acquired control of Armis in 2020 at a value of approximately $1.1 billion. Since then, the company’s value has jumped more than fivefold, and the current deal is expected to yield the fund a return of billions of dollars – one of its flagship investments in recent years.
Beyond the financial aspect, the deal also highlights a broader trend in the market: increasing consolidation in the cybersecurity industry, due to a sharp escalation in threats, the expansion of AI use and a deepening awareness by organizations that data security can no longer be managed as a point solution, but rather as an integral part of the entire business operation.
According to ServiceNow’s official announcement, the acquisition of Armis is intended to expand and broaden the company’s security capabilities across the entire organizational attack surface – from IT systems to operational technologies, medical devices and physical infrastructure. The company notes that the combination of its AI platform and Armis’s detection, exposure management and risk prioritization capabilities is intended to enable organizations to transition to proactive cybersecurity management, based on automation and AI, on a large scale. ServiceNow also noted that the move will significantly expand its activities in security and risk, and more than triple its market potential in this area. Beyond the business aspect, the deal reflects a broader trend of increasing integration between organizational process management and data security, especially in organizations that own critical infrastructure.
Published by Globes, Israel business news – en.globes.co.il – on December 23, 2025.
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