ServiceNow Initiates Historic $7.75 Billion Acquisition of Armis
On Tuesday, ServiceNow unveiled its substantial cash acquisition of cybersecurity startup Armis, a deal valued at an impressive $7.75 billion.
This transaction represents the software enterprise’s largest effort to date, funded through a combination of liquid assets and debt financing. The completion of this acquisition is anticipated in the latter half of 2026, contingent upon regulatory approvals.
Armis excels in the domains of cyber exposure management and cyber-physical security, offering protection across diverse sectors, including IT systems, operational technology, medical devices, and industrial machinery for Fortune 500 companies alongside government bodies.
The startup, which has been operational for nine years, has achieved an outstanding milestone of over $340 million in annual recurring revenue, showcasing a year-over-year growth rate exceeding 50%, as per ServiceNow’s announcement.
This acquisition signifies a considerable escalation in Armis’ valuation, having recently attracted $435 million in pre-IPO funding last November, which valued the company at $6.1 billion.
Co-founder and CEO Yevgeny Dibrov had previously earmarked a public listing for late 2026 or early 2027, expressing to TechCrunch that an initial public offering was his “personal dream.”
However, the news precipitated a near 3% decline in ServiceNow’s share price, signaling investor trepidation over the aggressive acquisition strategy. Earlier this year, the firm executed a $2.85 billion acquisition of AI assistant platform MoveWorks and is in the process of acquiring identity security company Veza for $1 billion.
Amit Zavery, ServiceNow’s president and chief product officer, articulated the company’s strategic intent, stating in a LinkedIn post, “This decision underscores our drive to enrich security context on the ServiceNow AI platform. Customers can proactively mitigate risk as AI adoption accelerates.”
Armis plays a pivotal role in safeguarding critical infrastructure for Global 2000 enterprises, with over 35% of Fortune 100 companies and seven of the Fortune 10 relying on its advanced solutions.
The firm’s innovative, agentless discovery technology effectively identifies both managed and unmanaged assets across conventional IT networks, operational technology, IoT frameworks, and medical systems—areas often overlooked by traditional security solutions.
ServiceNow’s Security and Risk business surpassed an annual contract value threshold of $1 billion in the third quarter of 2025.
The company projects that the Armis acquisition will more than triple its market opportunities in security solutions, propelling its roadmap towards autonomous and proactive cybersecurity innovations.
This merger aims to forge a comprehensive security operations framework that seamlessly integrates real-time asset discovery, threat intelligence, and risk prioritization with automated remediation protocols.
ServiceNow intends to amalgamate Armis’ functionalities with its AI Control Tower, designed to oversee AI governance within enterprise landscapes.
“AI is transforming the threat landscape at a pace quicker than most organizations can adapt,” remarked Dibrov. “Every connected asset has morphed into a potential vulnerability point. Collaboratively with ServiceNow, customers will gain a robust avenue to minimize exposure and fortify security on a grand scale.”
The trend of cybersecurity acquisitions persists amidst a rise in AI-driven threats. Earlier this year, Google’s parent company Alphabet disclosed an agreement to procure cloud security entity Wiz for $32 billion, while Palo Alto Networks announced a $25 billion acquisition of CyberArk Software in July. Projections indicate that global information security expenditures will rise by 12.5% in 2026, reaching $240 billion, according to research from Gartner.
Founded in 2015 by veterans of Israeli intelligence, Armis currently employs approximately 950 individuals. The company will integrate into ServiceNow following the successful completion of the deal, with Tidal Partners acting as primary financial advisor, alongside J.P. Morgan Securities and Barclays.
Source link: Technobezz.com.
