Armis Acquires Otorio for $120M to Enhance Cybersecurity in Physical Environments

In the rapidly evolving landscape of cybersecurity, more and more consolidation is occurring as platform players acquire specialized technology to enhance their expertise in burgeoning business sectors. Recently, Armis, a prominent name in cyber exposure management valued at $4.2 billion, announced its acquisition of Otorio, a firm specializing in securing industrial and physical environments.

Details of the Acquisition

While the exact terms of the deal have not been disclosed, sources familiar with the transaction revealed to TechCrunch that Armis is set to pay approximately $120 million in cash and shares for Otorio. This Tel Aviv-based startup previously secured $50 million from strategic investor Andritz, an industrial firm, as reported by PitchBook data.

Integration of Otorio’s Technology

Otorio’s flagship product, Titan, will be integrated into Armis’ Centrix platform. Historically, Armis has focused on cloud services, particularly in identifying and managing risks across various attack surfaces. Earlier this year, Armis gained attention for its efforts in blocking DeepSeek, a new AI model from China, and subsequently published research on the topic.

Focus on Industrial Security

The acquisition of Otorio will bolster Armis’s capabilities in securing industrial machinery and environments, areas often underestimated in terms of cybersecurity. As machines transition from “dumb” physical equipment to more connected models, their vulnerabilities increase, especially given the critical nature of some industrial infrastructures.

• Enhanced Security: Otorio’s technology will provide robust security solutions for both industrial and non-industrial physical environments.
• On-Premises Solutions: Armis aims to address the security needs of air-gapped environments that require on-premises deployments.
• Zero-Trust Capabilities: The acquisition will strengthen Armis’s offerings in zero-trust security models.

Statements from Leadership

Yevgeny Dibrov, CEO and co-founder of Armis, stated, “We are adding a few very strong components to our platform to address more environments.” He emphasized the significance of Otorio’s contribution in enhancing Armis’s capabilities.

On the other hand, Daniel Bren, CEO and co-founder of Otorio, expressed enthusiasm about joining forces with Armis: “Armis has rapidly become the leading provider of cyber exposure management and has built a best-in-industry cloud SaaS platform.”

The Current Landscape of Cybersecurity Startups

The last decade has witnessed a surge in early-stage cybersecurity companies, driven by an increasing threat landscape. Many startups have emerged, fueled by significant venture capital funding. However, recent trends indicate that late-stage companies are now attracting a substantial portion of investment, making mergers and acquisitions (M&A) a viable option for smaller startups.

As firms like Wiz raise billions for their acquisition strategies, Armis is also positioned as a significant player in this space. The acquisition of Otorio marks Armis’s third acquisition and its third within the past year, following its purchases of Silk Security for $150 million in April 2024 and CTCI for $20 million in February 2024.

For more insights on cybersecurity trends and acquisitions, visit our Cybersecurity News section.