More integrations are being rolled out in the security industry as platform players scooped up technology and provide deeper expertise in business growth. On Thursday, Armis, a $4.2 billion expert in cyber exposure management, said it would acquire Otorio, an expert in ensuring the industrial and physical environment.
The terms of the transaction have not been revealed, but sources close to the transaction tell TechCrunch that Armis, based in San Francisco but with Israeli roots, has paid $120 million in Otorio's cash and shares. Previously, the Tel Aviv-based startup had raised $50 million from one strategic investor, the industrial company Andritz, according to Pitchbook data.
Otorio's flagship product is called Titan and will be integrated into Armis' Centrix platform. Until now, Armis' main focus has been on identifying and managing cloud services and risks across their attack surfaces. For example, when a client said he was blocking China's new AI model, DeepSeek, we published a study explaining why and explaining why.
Otorio's technology complements Armis' existing capabilities, focusing on often overlooked regions, such as industrial machinery and the broader industrial environment. These environments are often thought to be inhabited by “silly” physical equipment. However, machines are gradually being replaced by more connected models, and when they do, they become equally vulnerable. Perhaps even more so, given the important nature of some industrial infrastructure.
The technology, in the words of CEO and co-founder Yevgeny Dibrov, is also extremely useful in expanding Armis' overall work in other physical environments that are non-industrial but require “ultra-safe” protection.
“We're adding some very powerful components to the platform to address more environments, particularly air gap environments that require on-premises deployment for SaaS products, and more air gap environments to actually address the needs and capabilities of Zero Trust,” he said. “The Otrio is really helping to take it to the next level in this environment.”
For Otorio, the acquisition is an opportunity to scale up in a more challenging way as a standalone startup.
“Armis has rapidly become a leading provider of cyber exposure management, creating an industry cloud SaaS platform that provides unparalleled visibility, security and risk management for businesses across all industries,” said Daniel Bren, CEO and co-founder of Otorio. “We are excited that our team will join Armis at this point and leverage the deep domain operational context.”
The past decade has been a big deal for early cybersecurity companies. Bringing the growing threat landscape, hundreds of companies have launched millions of funds from VCS, which discovered business opportunities to innovate in ever-evolving sectors. However, there are indications these days that later stage companies are getting a large portion of the money available. This makes M&A options a more obvious option for many small startups.
Companies like With have garnered billions to drive acquisition strategies, but others like Armis have also emerged as buyers. Otorio is Armis' third acquisition and the third acquisition in a year. It acquired Silk Security for $150 million in April 2024, and CTCI for $20 million in February 2024.