🧠 Food for thought

Implications, context, and why it matters.

Cybersecurity firms are positioning for major IPO wave in 2025-2026

• Armis’s IPO timeline aligns with industry expectations, as 2025 is anticipated to be a significant year for cybersecurity public offerings with 16 companies identified as potential candidates2.
• The company’s $300 million annual recurring revenue puts it in a strong position compared to recent cybersecurity IPOs, with Netskope filing to raise $813 million at a potential $6.5 billion valuation on similar revenue metrics3.
• SailPoint’s successful recent IPO after raising $1.38 billion serves as a positive test case for the sector, demonstrating investor appetite for established cybersecurity firms4.
• The broader market shows strong momentum with venture capital funding in cybersecurity reaching $5.1 billion year-to-date, while private equity investments totaled $6.4 billion5.

Private funding rounds offer strategic alternatives to immediate public offerings

• Armis’s approach of weighing multiple private offers while maintaining IPO plans reflects a strategic shift in how cybersecurity firms access growth capital.
• The company’s recent $100 million employee tender that valued it at $4.5 billion demonstrates how private transactions can provide liquidity without the complexities of going public1.
• Thoma Bravo’s interest in acquiring a stake rather than a full buyout represents the private equity trend toward partial ownership deals that allow companies to retain independence while accessing capital1.
• This dual-track approach gives Armis flexibility to capitalize on favorable market conditions for either private investment or public offering, particularly as M&A activity remains robust with over 120 deals totaling $9.2 billion in the cybersecurity sector this year5.