What's Happening?
Evgeny Dibrov, co-founder of Armis, has announced the sale of the cybersecurity company to U.S.-based ServiceNow for $7.75 billion. This transaction marks one of the largest exits in Israel's history,
particularly in the startup sector. Armis, founded in 2015, specializes in cybersecurity solutions for operational technology and physical infrastructure, serving major corporations including 35% of the Fortune 100 companies in the U.S. The acquisition by ServiceNow, a company known for its enterprise workflow management software, aligns with its strategy to expand its cybersecurity offerings. The deal includes $500 million in employee retention bonuses and is expected to close in the coming months, pending regulatory approvals.
Why It's Important?
The acquisition of Armis by ServiceNow highlights the growing importance of cybersecurity in the tech industry, particularly as companies face increasing threats to operational technology and infrastructure. This deal not only underscores the value of cybersecurity solutions but also reflects the strategic shift of ServiceNow to bolster its cybersecurity capabilities. For Armis, the acquisition provides access to greater resources and a broader customer base, potentially accelerating its growth and innovation. The transaction also signifies a significant financial gain for major investors like Insight Partners and the founders, who retain a 12% stake in the company.
What's Next?
Following the completion of the acquisition, Armis is expected to integrate with ServiceNow's existing cybersecurity operations, enhancing its product offerings and market reach. The focus will be on maintaining the Armis brand while leveraging ServiceNow's global presence to expand its customer base. The integration process will involve aligning the teams and developing a roadmap to enhance customer value. Additionally, ServiceNow plans to continue investing in Israel, recognizing it as a global hub for cybersecurity innovation.
