ServiceNow acquires Armis for $7.75 billion in its largest deal yet to expand cybersecurity push

ServiceNow said Tuesday it will acquire cybersecurity startup Armis in a cash deal valued at $7.75 billion, marking the largest acquisition in ServiceNow’s history.

The enterprise software company framed the purchase as a move to deepen its security portfolio at a time when artificial intelligence is reshaping how attacks are launched and defended against. ServiceNow said the deal will more than triple its market opportunity across security and risk solutions, pushing the company further into a space that has become central to enterprise spending.

The announcement followed Bloomberg’s reporting last week that ServiceNow was in advanced talks to acquire Armis in a transaction valued at up to $7 billion. Tuesday’s disclosure confirms those discussions and sets a higher final price.

“Together with Armis, we will deliver an industry-defining strategic cybersecurity shield for real-time, end-to-end proactive protection across all technology estates,” said president and chief product and operating officer Amit Zavery in a news release.

ServiceNow said the acquisition is expected to close in the second half of next year and will be financed through a mix of cash and debt. Shares of ServiceNow fell about 2% in premarket trading following the announcement.

ServiceNow’s $7.75B Armis Deal Signals New Phase of AI-Driven Cybersecurity

Armis has grown quickly as companies scramble to secure sprawling networks filled with laptops, servers, sensors, medical devices, and industrial systems. Founded in 2016, the California-based company focuses on monitoring internet-connected devices that often sit outside traditional security perimeters and have become frequent entry points for attackers.

In November, Armis said it had raised $435 million at a $6.1 billion valuation. At the time, co-founder and CEO Yevgeny Dibrov told CNBC that the company was eyeing a public listing in 2026 or 2027, with a longer-term goal of surpassing $1 billion in annual recurring revenue.

“The need for what Armis is doing and what we are building, in this cyber exposure management and security platform, is just increasing,” Dibrov said, adding that demand for its tools is “very unique and huge.”

ServiceNow said Armis has already crossed $340 million in annual recurring revenue, growing about 50% year over year. That figure is up from the $300 million the company disclosed in August, indicating continued momentum as enterprises increase spending to protect their systems.

The deal lands amid a busy stretch for cybersecurity mergers as large tech companies race to shore up defenses against more sophisticated threats. Google recently agreed to acquire cloud security startup Wiz for $32 billion, while Palo Alto Networks struck a $25 billion deal for CyberArk.

For Armis, the acquisition brings its public-market ambitions to a close, at least for now. Just over a month ago, the company said it was still keeping the door open to an IPO if market conditions improved. ServiceNow’s offer appears to have changed that path, folding one of the fastest-growing names in device security into a broader enterprise software platform, betting heavily on security as a core growth engine.

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