Cybersecurity firm Armis has announced the acquisition of Otorio, a specialist in securing industrial and physical environments, in a deal valued at $120 million. The transaction, which involves a combination of cash and shares, marks another strategic move by Armis to broaden its cyber-exposure management capabilities. The deal highlights the increasing demand for security solutions in physical spaces as industries become more interconnected and susceptible to cyber threats.

Enhancing Cybersecurity for Industrial and Physical Spaces

Armis, a company valued at $4.2 billion, has traditionally focused on cloud services and attack surface risk management. The integration of Otorio’s technology will enhance its ability to secure industrial machinery and infrastructure, which have often been overlooked in cybersecurity strategies. As industries transition to smart and connected systems, the risks associated with cyber threats in operational technology environments have surged, necessitating more robust protection measures.

Otorio’s Role and Integration into Armis

Otorio, headquartered in Tel Aviv, has developed a flagship product called Titan, which will be incorporated into Armis’ Centrix platform. The company had previously raised $50 million from Andritz, a strategic investor in the industrial sector, reflecting its deep expertise in operational security. With its focus on air-gapped environments and on-premises security solutions, Otorio’s capabilities will complement Armis’ existing portfolio, allowing for more comprehensive cybersecurity solutions.

Expanding Zero-Trust and On-Premises Capabilities

Armis CEO and co-founder Yevgeny Dibrov emphasized that Otorio’s addition will significantly advance their ability to address zero-trust security needs. While Armis has traditionally operated as a SaaS platform, this acquisition enables it to extend its reach to environments requiring on-premises security. As industrial automation expands, ensuring these networks remain impenetrable is becoming a critical priority for cybersecurity firms.

Strategic Growth Through Acquisitions

The acquisition of Otorio is Armis’ third in the past year, reinforcing its strategy of expanding through mergers and acquisitions. Earlier in 2024, Armis acquired Silk Security for $150 million and CTCI for $20 million, indicating a sustained push towards strengthening its cybersecurity ecosystem. As cybersecurity threats continue to evolve, acquiring specialized firms allows Armis to accelerate innovation and stay ahead in the competitive security landscape.

A New Chapter for Otorio

For Otorio, the acquisition presents an opportunity to scale its technology and reach a broader customer base. CEO and co-founder Daniel Bren expressed enthusiasm about joining Armis, recognizing its leadership in cyber-exposure management. The move positions Otorio’s technology within a larger framework, ensuring greater impact and deployment across multiple industries requiring high-security solutions.

The Shifting Landscape of Cybersecurity Investments

The cybersecurity sector has witnessed significant growth over the past decade, with startups securing substantial funding from venture capital firms. However, recent trends indicate that late-stage cybersecurity firms are receiving the bulk of available investment, making acquisitions a viable option for smaller startups. With major players like Wiz raising billions for acquisitions, Armis is emerging as an active consolidator, leveraging strategic purchases to strengthen its market position.

Armis’ acquisition of Otorio underscores the growing need for cybersecurity solutions tailored to industrial and physical environments. As industries embrace digital transformation, ensuring robust protection against cyber threats remains a top priority. By integrating Otorio’s expertise, Armis is set to expand its reach and enhance security for enterprises operating in both digital and physical domains.