Armis sale to ServiceNow could yield $4 billion windfall for Insight Partners
ServiceNow acquisition offer may overturn prior IPO plans and deliver huge returns for investors.
Armis, the Israeli-founded cybersecurity startup, is in advanced talks to be acquired by ServiceNow in a deal that could reach $7 billion, according to Bloomberg. The development marks a sharp pivot from just a month ago, when CEO Yevgeny Dibrov told Calcalist that a full sale was not under serious consideration. According to market estimates, the high-value offer from ServiceNow prompted the board to reconsider, potentially altering the company’s exit strategy.
The acquisition, if completed, would deliver the largest windfall to Insight Partners, which holds a significant stake in Armis. Industry estimates suggest the fund could realize roughly $4 billion on a $1 billion investment. Other beneficiaries include Google’s investment fund CapitalG and Brookfield. In addition to standard investment rounds, Insight Partners and CapitalG acquired significant stakes in Armis in a 2020 deal at a company valuation of around $1.1 billion.
Armis has been on a rapid growth trajectory. Last month, the company raised $435 million at a valuation of $6.1 billion, one of the sector’s largest private financings this year. The round, led by Growth Equity at Goldman Sachs Alternatives, brought new investors Evolution Equity Partners and reinforced commitments from existing investors, including CapitalG. This follows a secondary round in July valuing Armis at $4.5 billion, and a 2024 financing at $4.3 billion.
The company recently surpassed $300 million in annual recurring revenue (ARR), a $100 million increase in under a year, aided in part by acquisitions such as Israeli startup Autorio. Founded in 2016 by Dibrov and CTO Nadir Izrael, Armis develops cybersecurity solutions designed to secure critical infrastructure and provide organizations with real-time visibility across their entire digital attack surface. The company employs roughly 850 people in Israel and abroad.
Just last month, Dibrov had outlined a clear path toward an eventual IPO. “We have crossed the $300 million mark, and investment and acquisition offers are constantly flowing to us,” he said. “Our goal is to reach $1 billion in ARR within three years, and to go public by the end of 2026 or 2027.” Dibrov had emphasized that the board was aligned with maintaining control and scaling revenue aggressively, rather than pursuing a full sale.
The ServiceNow discussions, however, appear to have shifted priorities. With a high offer on the table, the company may now consider a full acquisition as a strategic move that satisfies investors while providing liquidity to key stakeholders.
