US private equity fund Insight Partners is in talks to sell Israeli cybersecurity company Armis to US private equity firm Thoma Bravo at a company valuation of $5 billion, sources familiar with the negotiations have told “Globes.”
The deal will likely be completed by selling control to Thomas Bravo at a valuation of $5 billion and by injecting hundreds of millions of dollars into the company’s coffers. At this stage, it is unknown what the holding percentage of existing shareholders will be.
If the deal is completed, Insight Partners, which focuses on young growth companies, will generate income of $2-3 billion, while other major shareholders include Canadian fund Georgian, Chicago-based GT Squared, and New York-based One Equity Partners, for whom the investment is managed by Ori Cohen. Other investors include Capital G, Brookfield, General Catalyst and Alkeon Capital.
Nearing an IPO?
According to PitchBook’s investment database, since its acquisition by Insight Partners in 2020, which was intended to improve the company for a sale, Armis has raised over $800 million in venture capital and loans from Hercules Capital
The company announced earlier this month that its annual revenue growth rate (ARR) is reaching about $300 million – a $100 million increase over 2024. Considering this, this is a valuation multiple relative to ARR of only 16-17, low compared to the double-digit multiples at which cybersecurity companies like Wiz or Dazz have been acquired recently. The company was only recently valued at $4.5 billion during a private sale of shares (a “secondary” round) in which long-time investors and employees sold shares totaling $100 million.
The sale to Thomas Bravo could be ahead of an IPO. In the past, the people at Armis have stated that they want to take the company in this direction, and Thoma Bravo, which invests in pre-IPO companies, as it did, for example, with Israeli company ironSource, may benefit from this. For Insight Partners, which is currently raising its 13 th fund and is interested in showing investors a quick return, this is a sufficient deal in the current timeframe, without waiting for the IPO. An acquisition by a private equity fund, in this case, a change of hands between Insight Partners and Thoma Bravo, serves mainly to liquidate the former’s stake while giving a higher value to the acquired company, and allowing it to continue to improve its business performance, or prepare for an IPO
Armis operates in the critical infrastructure security, industrial and medical devices markets, and competes with other Israeli companies such as Axonius, Claroty and Shalev Hulio’s Dream Security. The company was founded by Yevgeny Dibrov and Nadir Izrael, serial entrepreneurs who have also invested in other cybersecurity companies and venture capital funds – such as Gili Raanan’s Cyberstarts. Armis has 900 employees and customers include Colgate-Palmolive, airline giants such as United, and the US Postal Service.
Published by Globes, Israel business news – en.globes.co.il – on August 18, 2025.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2025.
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