Armis Security is in advanced talks to raise several hundred million dollars at a valuation above US$5 billion, according to Calcalist.

The fundraising round is set to include a large secondary sale for existing investors and employees, with Thoma Bravo expected to join.

Armis, an Israel-founded cybersecurity firm, completed a secondary round at a US$4.5 billion valuation earlier this year, with Georgian as a key investor.

In October 2024, Armis was valued at US$4.3 billion after raising US$200 million from backers including General Catalyst, Alkeon Capital, Brookfield, and Georgian.

The company has expanded through acquisitions, buying Israeli firms Autorio in March 2025 for about US$120 million and Silk Security in April 2024 for US$150 million, as well as US-based CTCI in February 2024 for US$20 million.

Armis reports annual sales of roughly US$300 million and plans to go public in 2026.

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🔗 Source: Calcalist

🧠 Food for thought

1️⃣ Rapid ARR growth signals strong market demand for comprehensive cybersecurity platforms

Armis’s trajectory from $100 million to over $200 million in annual recurring revenue in less than 18 months reflects exceptional market demand for its unified security approach 12.

This growth rate is particularly notable given the company’s scale, as Armis now tracks approximately 5 billion devices daily and serves over 35 Fortune 100 companies 1.

The company’s ambitious target of reaching $500 million ARR by 2026 suggests management believes this acceleration can continue, which would represent more than doubling their current revenue in roughly two years 2.

This growth occurs within a broader cybersecurity market projected to surpass $200 billion in revenue by 2025, with AI-powered cybersecurity solutions specifically expected to grow from $15 billion in 2021 to $135 billion by 2030 3.

2️⃣ Strategic acquisitions fuel revenue multiplication rather than simple integration

Armis’s acquisition strategy demonstrates how well-executed M&A can dramatically amplify acquired companies’ revenue potential rather than merely adding their existing revenue streams.

The company’s acquisition of Silk Security for $150 million in April 2024 illustrates this pattern, as Silk’s operations grew from generating “several hundreds of thousands of dollars” to “tens of millions in revenue” after integration.

Similarly, the March 2025 acquisition of Autorio for around $120 million is already generating meaningful revenue for Armis, suggesting rapid integration and cross-selling capabilities.

This approach reflects a broader trend in cybersecurity where platform consolidation creates significant value. In 2021 alone, over 30 cybersecurity companies raised $200 million or more, contributing to over $23 billion in venture capital for the sector as companies sought to build comprehensive security platforms 4.

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