Venture Capital and private equity investment firm Insight Partners has agreed to acquire IoT security firm Armis in a cash deal valuing the firm at $1.1 billion.
Armis offers an enterprise-grade agentless platform designed to help organizations address problems related to unmanaged and unprotected IoT devices. The solution, powered by a cloud-based database that monitors millions of devices around the world, provides visibility into an enterprise’s devices, identifies risks and threats, and protects systems.
Back in April 2019, the company claimed that its annual revenue had increased by 700%. The company says that 25% of Fortune 50 companies use its technology, with customers including Samsung Research America, Allergan, Sysco Foods, and Mondelēz, and Oracle.
Since being founded, Armis has raised roughly $112 million in funding, including a $65 million Series C round in April 2019.
Under the terms of the agreement, Insight will acquire the company for cash at a valuation of $1.1 billion, with participation from CapitalG (formerly Google Capital) for $100 million and rollover from certain existing stockholders.
The company will continue to operate independently and will be managed by co-founders, Yevgeny Dibrov, CEO, and Nadir Izrael, CTO.
Since it emerged from stealth mode in June 2017, Armis discovered potentially serious Bluetooth and DNS vulnerabilities, and in 2019 it discovered critical vulnerabilities in the Wind River VxWorks real time operating system (RTOS), named collectively as ‘Urgent/11’.
“One of the biggest challenges keeping CIOs and CISOs up at night is how to secure the unmanaged devices proliferating through their businesses, from manufacturing floors to hospital rooms, from airports to boardrooms. These devices – capturing and creating business critical information, working on production lines, or administering patient care – have no protection and they need a security solution,” said Nadir Izrael, CTO and co-founder at Armis.
As part of the acquisition, Insight Founder Jeff Horing, Insight Managing Director Teddie Wardi, and Cyberstarts Founder Gili Raanan will be serving on the Armis Board of Directors.
The deal is expected to close in February and is subject to customary conditions and approvals.