US-based private equity firm Insight Partners is to buy cyber security firm Armis at a valuation of US$1.1 billion.
Under the terms of the agreement, Insight will acquire the company for cash at a valuation of US$1.1 billion, with participation from Alphabet-owned CapitalG for $100 million and rollover from certain existing stockholders.
According to Armis, the deal represents the largest-ever enterprise IoT Security software acquisition.
Armis will continue to operate independently and will be fully managed by its two co-founders, Yevgeny Dibrov, CEO, and Nadir Izrael, CTO, and executive team, while leveraging the support of Insight's industry leading business strategy and ScaleUp division, Onsite.
Closing is expected to occur in February and is subject to customary conditions and approvals.
"Insight is one of the most sophisticated software investors in the sector, and it is due to the depth of their domain expertise that they really understand the enterprise IoT device challenge we are looking to solve, and the size of the market opportunity," said Dibrov.
"We considered growth rounds and strategic offers, but by partnering with Insight we have the best of both worlds - operational support and independence, both of which were important in our decision to take on a scale-up partner this early in our company journey."
The announcement marks the second Israeli cyber security firm to be snapped up this week as Segasec is acquired by Mimecast.
As part of the acquisition, Insight Founder Jeff Horing, Insight Managing Director Teddie Wardi, and Cyberstarts Founder Gili Raanan will be serving on the Armis board of directors.