ServiceNow in Advanced Negotiations to Acquire Armis for $7 Billion
Following the strategic acquisitions by Alphabet and Palo Alto Networks of cybersecurity firms, ServiceNow Inc. is currently engaged in advanced negotiations to procure Armis, an Israeli startup founded by military cyber veterans, for a potential sum of up to $7 billion, as reported by Bloomberg, citing informed sources. Should this acquisition materialize, it would mark ServiceNow’s most significant purchase to date.
Reports indicate that while discussions have reached an advanced stage and an announcement could be forthcoming, the possibility remains that the negotiations could falter or that another interested party may surface.
A representative from ServiceNow declined to provide comment, and inquiries directed to Armis went unanswered, as noted by Bloomberg.
Overview of ServiceNow and Armis
ServiceNow specializes in providing software solutions designed to streamline and automate information technology (IT) and workforce operations. According to the report, the Santa Clara, California-based enterprise has evolved into a “dominant” platform for workflow management across organizations.
As of the close of trading on Friday (December 12), ServiceNow’s stock was down approximately 0.3% in New York, positioning the company’s market capitalization close to $179.5 billion.
This development is not ServiceNow’s inaugural venture into technology-driven acquisitions. In March, the company announced its intent to acquire the AI firm Moveworks Inc. for $2.85 billion, aiming to harness AI capabilities that can perform tasks autonomously.
Armis, headquartered in San Francisco and established by former Israeli military cyber intelligence personnel, excels in detecting and monitoring security vulnerabilities across devices. The firm operates across various sectors, including defense, financial services, and healthcare, according to the report.
CEO Yevgeny Dibrov indicated in August that Armis had reached an impressive $300 million in annual recurring revenue for 2025, a substantial increase from $200 million the previous year. He also mentioned that the company is contemplating an initial public offering (IPO) in 2026.
Previously, in 2020, Insight Partners and other investors, including Alphabet’s CapitalG, had agreed to acquire Armis for $1.1 billion.
In September, private equity powerhouse Thoma Bravo also engaged in discussions regarding a potential acquisition of Armis, receiving around six to seven offers from various investors seeking a stake in the company.
Intensifying Competition in Cybersecurity Among Tech Giants
Prominent IT behemoths, including Microsoft and Salesforce Inc., are vying to integrate generative artificial intelligence (gen AI) features into their offerings.
Concurrently, there is a vigorous push to incorporate cybersecurity considerations into technological products, as evidenced by recent transactional activities involving Alphabet and Palo Alto.
In March, Google’s parent company announced a $32 billion cash acquisition of the cloud security firm Wiz Inc. Moreover, Palo Alto revealed in July that it would be acquiring the Israeli company CyberArk Software for approximately $25 billion, as detailed in the report.
Source link: Livemint.com.
