ServiceNow in talks to acquire cybersecurity startup Armis in deal valued up to $7 billion

Software company ServiceNow is in advanced talks to acquire cybersecurity startup Armis in a deal that could reach $7 billion, Bloomberg reported, citing people familiar with the matter. If completed, the transaction would stand as ServiceNow’s largest acquisition to date.

The discussions follow closely on the heels of Armis’s recent $435 million funding round, which valued the company at $6.1 billion. That round drew backing from CapitalG, Alphabet’s venture arm, along with Evolution Equity Partners. The timing has drawn attention across the cybersecurity and enterprise software markets, with talks reportedly well advanced yet still private.

“ServiceNow Inc. is in advanced talks to buy the cybersecurity startup Armis in a deal that may be valued at as much as $7 billion and would represent the tech company’s largest acquisition to date,” Bloomberg reported.

Bloomberg added that an announcement could come as soon as this week. The report added that the talks remain fluid and may still fall apart. Armis and ServiceNow declined to comment when contacted by CNBC.

Founded in 2016, Armis focuses on securing internet-connected devices used across enterprises. Its platform monitors laptops, servers, sensors, medical devices, and industrial systems, all frequent targets for cyberattacks. The company positions itself as a way for organizations to gain visibility into devices already connected to their networks and to stop breaches before damage spreads.

Just over a month ago, Armis told CNBC that it had raised fresh capital while keeping its long-term public-market ambitions alive. CEO and co-founder Yevgeny Dibrov said the company had been aiming for an IPO toward the end of 2026 or early 2027, pending “market conditions.”

Choosing a sale over a public listing reflects a broader shift playing out across the startup market. IPO windows remain uncertain, and many late-stage companies have opted to stay private longer or pursue strategic exits rather than risk a quiet public-market debut.

Armis has posted strong growth metrics. In August, the company said it had crossed $300 million in annual recurring revenue, hitting that mark less than a year after passing $200 million. That pace has helped attract sustained investor interest. Its latest funding round was led by Goldman Sachs Alternatives’ growth equity fund, with participation from CapitalG. Earlier backers include Sequoia Capital and Bain Capital Ventures.

Reports earlier this year suggested Armis fielded multiple investment offers, with Bloomberg saying the company reviewed as many as seven proposals. The recent funding round emerged from those discussions, setting the stage for what could now become one of the largest cybersecurity acquisitions of the year if ServiceNow moves forward.

Armis CEO Yevgeny Dibrov and CTO Nadir Izrael (Credit: Armis)