Key Takeaways
- • One Equity Partners has completed its exit from Armis through a definitive agreement to sell its stake to ServiceNow (NYSE: NOW) in a transaction valuing the cyber exposure management company at $7 billion.
- • Armis achieved $300+ million in Annual Recurring Revenue (ARR) with approximately 50% year-over-year growth during OEP's four-year investment period, demonstrating strong commercial momentum in the cybersecurity market.
- • OEP orchestrated three strategic acquisitions for Armis over the past two years, expanding the platform's capabilities across cloud, artificial intelligence, and operational technology security—a value-creation strategy that strengthened the company for acquisition.
- • Armis operates at enterprise scale with client relationships spanning over 40% of Fortune 100 companies, including 7 of the Fortune 10, across manufacturing, aviation, financial services, healthcare, and government sectors.
- • The transaction represents a successful middle-market private equity exit, with OEP leveraging its technology sector expertise and M&A capabilities to drive recurring revenue growth and position Armis for a premium strategic acquisition.
Summary
One Equity Partners, a middle-market private equity firm, has entered into a definitive agreement to sell its stake in Armis to ServiceNow in a transaction that values the cyber exposure management company at $7 billion. The sale marks the completion of OEP's four-year investment period in the firm, which was founded in 2015 as a leader in asset visibility and cybersecurity solutions.
Armis has achieved significant operational scale and growth metrics that underpinned the valuation. The company recently surpassed $300 million in Annual Recurring Revenue (ARR) with approximately 50% year-over-year growth. Its client base spans over 40% of Fortune 100 companies, including 7 of the Fortune 10, across diverse sectors including manufacturers, airlines, financial services firms, healthcare institutions, and state and federal agencies. This broad enterprise customer concentration demonstrates the company's mission-critical positioning in critical infrastructure protection.
OEP's value creation strategy during its ownership period centered on organic revenue growth and transformational M&A. The firm worked closely with Armis management to develop and execute an acquisition strategy that resulted in three strategic acquisitions over the past two years. These deals expanded Armis's capabilities across cloud security, artificial intelligence, and operational technology security—addressing evolving threat vectors in modern enterprise environments. Andrew Dunn, Partner at One Equity Partners, noted that the investment "illustrates our ability to identify leading-edge companies in the dynamic technology space, drive recurring revenue growth via new client acquisition and transformational M&A, and boost value in the marketplace."
The sale to ServiceNow represents a logical strategic combination, with the enterprise software platform seeking to enhance its integrated security capabilities. ServiceNow's acquisition integrates Armis's asset exposure management platform with the broader ServiceNow ecosystem, positioning the combined entity to address enterprises' end-to-end cybersecurity and IT operations requirements.
Armis has achieved significant operational scale and growth metrics that underpinned the valuation. The company recently surpassed $300 million in Annual Recurring Revenue (ARR) with approximately 50% year-over-year growth. Its client base spans over 40% of Fortune 100 companies, including 7 of the Fortune 10, across diverse sectors including manufacturers, airlines, financial services firms, healthcare institutions, and state and federal agencies. This broad enterprise customer concentration demonstrates the company's mission-critical positioning in critical infrastructure protection.
OEP's value creation strategy during its ownership period centered on organic revenue growth and transformational M&A. The firm worked closely with Armis management to develop and execute an acquisition strategy that resulted in three strategic acquisitions over the past two years. These deals expanded Armis's capabilities across cloud security, artificial intelligence, and operational technology security—addressing evolving threat vectors in modern enterprise environments. Andrew Dunn, Partner at One Equity Partners, noted that the investment "illustrates our ability to identify leading-edge companies in the dynamic technology space, drive recurring revenue growth via new client acquisition and transformational M&A, and boost value in the marketplace."
The sale to ServiceNow represents a logical strategic combination, with the enterprise software platform seeking to enhance its integrated security capabilities. ServiceNow's acquisition integrates Armis's asset exposure management platform with the broader ServiceNow ecosystem, positioning the combined entity to address enterprises' end-to-end cybersecurity and IT operations requirements.
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