A ServiceNow () has reached a deal to buy cybersecurity startup Armis in a transaction valued at $7.75 billion, representing its largest acquisition to date.
The Santa Clara, Calif.-based enterprise technology company will pay cash for San Francisco-based Armis, according to a statement Tuesday that confirmed an earlier report from Bloomberg News.
ServiceNow shares fell about 1.3% in early trading before markets opened in New York. On Monday (22), they closed up approximately 0.9%, giving the company a market valuation of around US$163 billion.
ServiceNow said in a statement that it expects to finance the transaction through a combination of cash on hand and debt. The deal is expected to close in the second half of 2026, subject to regulatory approvals and closing conditions, the statement said.
Founded by veterans of Israeli military cyber intelligence, San Francisco-based Armis specializes in identifying and monitoring device security threats across a variety of industries, including healthcare, financial services and defense.
In early August, Armis CEO Yevgeny Dibrov stated that the company had reached $300 million in annual recurring revenue, an increase from $200 million the previous year, and that it still planned to go public in 2026.
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ServiceNow, which provides software to help companies organize and automate their people and information technology operations, has become a dominant platform for enterprise workflows. In March, ServiceNow reached a deal to buy artificial intelligence company Moveworks for $2.85 billion as part of its strategy for AI tools that perform tasks without human supervision.
“ServiceNow is building the security platform of tomorrow,” said Amit Zavery, president, chief operating officer and chief product officer at ServiceNow, in a statement Tuesday.
Upon completion of the deal, ServiceNow will integrate data from Armis’ threat prevention services into its larger cybersecurity suite, enhancing customers’ ability to defend themselves against cyberattacks, Zavery said in an interview.
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“We take this information, monitor it and carry out security operations around it,” he said. “For customers, we will be able to provide alerts, incident management and triage services to ensure the incident does not happen again.”
The deal for Armis follows a series of acquisitions in the cybersecurity sector, a trend driven by the growing use of AI to detect hacking threats. In March, Google’s parent company, Alphabet (), agreed to acquire cloud security company Wiz for $32 billion in cash. In July, Palo Alto Networks agreed to buy CyberArk in a deal that valued the Israeli company at about $25 billion.
In 2020, Insight Partners agreed to acquire Armis in a $1.1 billion deal that included other investors such as Alphabet’s investment arm CapitalG.
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Private equity giant Thoma Bravo had previously expressed interest in a possible deal with Armis, and the startup’s executives said in September that they were evaluating around six to seven offers from investors for a stake in the company.
© 2025 Bloomberg L.P.
