More consolidation is playing out in the security industry as program participants scoop up technology to give them deeper knowledge in growing business areas. On Thursday, , a$ 4.2 billion expert in cyber-exposure control, said it would be acquiring , a specialist in acquiring professional and natural environments.  ,
Terms of the deal are not being disclosed, but sources close to the purchase tell TechCrunch that Armis— which is based in San Francisco but has roots in Israel — is paying$ 120 million in cash and stock for Otorio. Formerly, the Tel Aviv-based business had raised$ 50 million from one tactical investment, the business company Andritz, according to PitchBook information.
Otorio’s flagship product is called Titan, and it will be integrated into Armis ‘ Centrix program. Up to now, Armis ‘ main focus has been on cloud services and identifying and managing risks across that assault area. For instance, it made headlines earlier this year when it said that its users were blocking DeepSeek, the new AI design out of China, and then proceeded to distribute analysis .
Otorio’s technology will enhance Armis ‘ existing capabilities with a focus on an area that is sometimes overlooked — business machinery and broader commercial environments. These environments are often thought of as populated with “dumb” physical equipment. But machines are gradually getting replaced with more connected models, and when they do, they become equally vulnerable — perhaps even more so, considering the critical nature of some industrial infrastructure.  ,
The tech is also very useful for extending Armis ‘ overall work in other physical environments that are non-industrial but still require” super secure” protections, in the words of CEO and co-founder Yevgeny Dibrov, and thus require on-premises security solutions.
” We are adding a few very strong components to our platform to address more environments, especially air gap environments that require on-premise deployments versus our SaaS product, and also to really address zero-trust needs and capabilities”, he said. ” Otorio is really helping us take it to the next level for this environment”.
For Otorio, the acquisition is an opportunity to scale up in a way that would have been more challenging as a stand-alone startup.
” Armis has rapidly become the leading provider of cyber exposure management and has built a best in industry cloud SaaS platform that provides unmatched visibility, security, and risk management to enterprises across all industries”, said Daniel Bren, CEO and co-founder of Otorio, in a statement. ” I am thrilled for our team to be joining Armis at this time and to leverage our deep domain operational context” . ,
The last decade has been a big one for early-stage cybersecurity companies: Fueled by an ever-growing threat landscape, hundreds of companies have launched with millions in funding from VCs who’ve spotted business opportunities to innovate in an ever-evolving field. But more recently, there are that late-stage companies are getting the bulk of the money available. That makes the M&, A option a more obvious choice for a lot of smaller startups.
While companies like Wiz have raised billions to power their , others like Armis are also emerging as buyers. Otorio is Armis ‘ third acquisition, as well as its third in the space of a year. It acquired for$ 150 million in April 2024 and CTCI for$ 20 million in February 2024 for$ 20 million.