CapitalG, internet and technology group Alphabet’s growth equity arm, agreed yesterday to provide $100m as part of a $1.1bn acquisition of France-based cybersecurity software provider Armis by growth equity firm Insight Partners.
Insight Partners will put up the majority of the cash for the transaction, with ‘rollover’ from undisclosed existing investors in the company. The deal is expected to close next month.
Armis produces security software for enterprises operating internet-of-things (IoT) or unmanaged devices, such as mobile devices, smart televisions or full-scale industrial or building systems.
Venture capital fund Iris Capital and assorted angel investors had provided approximately $1.1m for Armis in 2017 before the company added $6.7m from VC firm Elaïa Partners and unnamed existing backers.
The company subsequently raised $30m in an April 2018 series B round co-led by VC fund Red Dot Capital Partners and Bain Capital Ventures, the VC arm of private equity firm Bain Capital, and backed by VC firms Tenaya Capital and Sequoia Capital.
The series B investors returned for a $65m series C round that Sequoia led, and which included Insight Partners and Intermountain Ventures12 months later that the company said increased its overall funding to $112m.
Armis co-founder and CEO Yevgeny Dibrov said: “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 scaleup partner this early in our company journey.
“We are thankful for the support we received from our investors at Sequoia, Tenaya, Bain and Red Dot; and we, as well as the whole Armis team, are very excited to have Insight working alongside us as we enter this next phase, accelerating our platform and growth.”
