Insight Partners, New York’s leading Software investment firm, has acquired Palo Alto-based cybersecurity named Armis Security. As per the agreement, Insight will pay approximately $1.1 billion in cash for this acquisition with CapitalG, former Google Capital. CapitalG will fund $100 million for this acquisition and rollover from some existing stakeholders.
The deal is expected to close in February 2020 and subject to customary conditions and approvals. Although the total amount of Armis is not revealed. As per the agreement, Armis will work independently, whereas it will take the support of Insight’s business strategy for the ScaleUp division, Onsite.
Chairman of Armis, Gili Raanan, said that Armis is the biggest Isreal cybersecurity purchase ever in the private sector. This is a significant step journey of the startup. It is aiming to become a discrete cybersecurity powerhouse. According to the company, the acquisition of Armis Security is noted as the first and the biggest cybersecurity software startup takeover of 2020.
Despite the purchase by Insight, Armis will be in operation with its existing team and co-founders Yevgeny Dibrov and Nadir Izrael. On the other hand, as a part of the acquisition, the board of directors team of Armis will include Insight founder Jeff Horing, managing director Teddie Wardi and Cyberstarts founder Gili Raanan.
Armis co-founder, Yevgeny Dibrov, said that Insight is the most enlightened and expertise software investors in the fin-tech sector. Insight understands the loT device challenges that the Armis team is looking to solve and provide the solution to it by considering the size of the market opportunities. Partnering with Insight will give the perk of operational support and independence as this is important in the Armis decision to take on an escalated partner so early in our startup journey.
Before this acquisition, Armis raised an additional $65 million funds from Sequoia Capital, which takes the total funding of this cybersecurity startup to $112 million
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