By Yevgeny Dibrov, CEO & Co-Founder and Nadir Izrael, CTO & Co-Founder
Today, we are so excited and honored to announce that after starting Armis only four years ago, and after raising $116 million, Insight Partners will acquire the company at a valuation of $1.1 billion. CapitalG, the investment arm of Alphabet, Google’s parent company, also participated for $100 million. This is a significant event on so many levels for us.
Why A Venture Acquisition?
First, we want to be clear: Armis will continue to operate independently, and will be fully managed by us and our current executive team, while leveraging the support of Insight’s industry-leading business strategy and ScaleUp division, Onsite. Insight is one of the most sophisticated software investors in the sector, and it is due to the depth of their domain expertise. By partnering with Insight, we have the operational support and benefits of a strategic investor with the independence of a venture deal, both of which were important factors in our decision to take on a scaleup partner this early in our company’s journey.
As the largest acquisition of a private Israeli cybersecurity company ever, it is a huge validation of Armis as the leader in the enterprise IoT security space. As Jeff Horing, Managing Director at Insight said, “We believe this team and their technology will continue to transform the securitization of unmanaged devices.” We are grateful for such support.
Securing A Huge Digital Transformation
A little over four years ago, we saw this challenge coming—a world exploding with unmanaged devices. Today, connected devices are used in every vertical from manufacturing floors to assembly lines, from oil rigs to power plants, from warehouse to retail stores, from airport kiosks to the badge readers outside every building, from the Boardroom to the emergency room in hospitals. These devices are at the core of a business transformation.
According to Gartner, there will be 25 billion “un-agentable” devices driving collaboration, productivity, and efficiency in today’s businesses. But these connected devices were built without any security, no way to update them easily, and no way to accept any management or security agents. This is why they are also the new attack landscape and perceived as low-hanging fruit for hackers, with attacks up 300% this past year alone.
We talked with many CIOs and CISOs as we set out on this journey, and what we continued to hear as one of their top issues was securing these new devices. We knew businesses needed a new approach—one that was agentless. From the time we identified the need for an agentless device security platform to protect IoT and unmanaged devices, it was clear to us that we needed to develop the technology, scale up a Device Knowledgebase, build a leading organization, and meet the needs of world-class customers—all while creating a new market category.
Our mission was and is still clear: Enable enterprises to adopt new types of connected devices without fear of compromise by cyber attack.
Thank You To Our Customers
We would like to thank our customers. Being a new company in a new space brings with it a unique set of challenges. We’ve had the opportunity to work with so many talented people and organizations—and none as important as our customers. You shared your concerns, you shared our vision of a more secure world, and you believed in Armis to bring a new, agentless approach to the device security you need.
We have had the opportunity to secure organizations from mid-size enterprises to global Fortune 100 companies in all industries, including manufacturing, medical, retail, service organizations, government, and more. The support from Armis that you rely on will remain the same. The Armis Security platform will continue to evolve and to quickly deliver the capabilities you need as your business needs evolve.
Thank You To Our Investors
Of course, we wish to thank our investors who took a chance on us and believed in our idea and the market opportunity. Our seed round was led by Gili Raanan from Sequoia, along with Zohar Zisapel, Mickey Boodai, Rakesh Loonkar, Assaf Rappaprt, Rene Bonvanie, and Michael Shaulov. They did more than simply provide funding. They were partners, confidants, and supporters as we took our first steps, and continued to be incredible resources on this journey.
As we moved along, we raised a total of $112 million from some of the most respected names in venture capital including Sequoia Capital (Carl Eschenbach),Tenaya Capital (Tom Banahan), Red Dot Capital (Yaniv Stern). Bain Capital (Jeff Williams), CapitalG. And, yes, Insight, in our Series C, too.
Each of you has invested so much of yourself, your experience, and your insights. You have been so supportive over these last few years, and are the definition of the word “partner.” We are grateful.
Thank You To Our Partners
Armis has been channel-focused from the beginning . We are grateful for the resellers and alliance partners that we have worked with over the last few years. You understand your customers’ needs, and we’ve partnered together to usher in the age of agentless device security. Today’s news only brings greater opportunity for us together.
Thank You To Our Incredible Team
Last, but in no way least, we wish to thank everyone on the Armis team. This is a major milestone and a testament to the hard work and ingenuity of our outstanding team.
Working together, with one mission, with clear focus, we can achieve great things. We want to say how grateful we are to each and every one of you. We are looking forward to building an even greater success story with each of you. Thank you for all you do every day. We never take it for granted.
The Adventure Continues
The last four years have been the fastest and most intense in our personal and professional lives—and the most exciting. We’ve seen Armis grow to over 250 employees, and be deployed in over 165 countries with some of the world’s leading companies. We’ve built the world’s largest Device Knowledgebase tracking 110M devices daily—and growing—providing the deepest insights on device behavior. And, we don’t plan on letting up anytime soon.
It has been an incredible adventure. But our vision remains the same as we said in June of 2017, when we came out of stealth:
- Enable businesses to use unmanaged, IoT, and any device safely and securely
- Give businesses the tools to see and understand what those devices are doing, anytime and anywhere in their environments
- Deliver on the promise of a secure connected Internet of Things
The new partnership with Insight brings the fuel to accelerate our vision. We look forward to what is ahead.
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*** This is a Security Bloggers Network syndicated blog from Armis authored by Jeff Zacuto. Read the original post at: https://www.armis.com/resources/iot-security-blog/insight-acquires-armis/