ServiceNow to Acquire Cybersecurity Firm Armis in $7.75 Billion Deal
ServiceNow to Acquire Cybersecurity Firm Armis in $7.75 Billion Deal
Publish Date: 2026-01-13 14:17:00
Source Domain: www.pymnts.com
Using an unordered list, summarize the following article with between 4 and 8 key points. ServiceNow Inc. has agreed to buy cybersecurity startup Armis in a transaction valued at $7.75 billion, marking the largest acquisition in the enterprise software company’s reminder to date. The deal underscores ServiceNow’s growing push to expand its security and automation offerings as cyber risks escalate across industries.
The Santa Clara, California-based company will acquire San Francisco-based Armis entirely in cash, according to a statement released Tuesday that confirmed an earlier report by Bloomberg. Per Bloomberg, the transaction is expected to be financed through a mix of existing cash reserves and new debt.
Following the announcement, ServiceNow shares slipped about 1.3% in early premarket trading in New York. The stock had finished up roughly 0.9% on Monday, leaving the company with a market capitalization of about $163 billion, according to Bloomberg.
ServiceNow said the acquisition is expected to close in the second half of 2026, subject to regulatory approvals and customary closing conditions. According to Bloomberg, the company views the purchase as a key step in strengthening its cybersecurity portfolio alongside its core enterprise workflow software.
Armis was founded by veterans of Israeli military cyber intelligence and focuses on identifying and monitoring security threats across connected devices. Its technology is used in sectors ranging from healthcare and financial services to defense, per Bloomberg. The company has benefited from rising demand for tools that can secure sprawling networks of devices increasingly targeted by cyberattacks.
Read more: Five Major Changes to the Regulation of Cybersecurity in the UK Under the Cyber Security and Resilience Bill
In August, Armis Chief Executive Officer Yevgeny Dibrov said the company had reached $300 million in annual recurring revenue, up from $200 million a year earlier, and was still considering a public listing in 2026, according to Bloomberg. That growth helped position Armis as an attractive acquisition target amid intensifying competition in cybersecurity.
Read more: Five Major Changes to the Regulation of Cybersecurity in the UK Under the Cyber Security and Resilience Bill
ServiceNow has been steadily expanding beyond its roots in IT service management to become a central platform for enterprise workflow automation. In March, the company agreed to buy artificial intelligence startup Moveworks Inc. for $2.85 billion, a deal aimed at boosting AI-driven tools that can perform tasks without human intervention, according to Bloomberg.
“ServiceNow is building the security platform of tomorrow,” Amit Zavery, the company’s president, chief operating officer and chief product officer, said in a statement Tuesday.
Once the Armis transaction is completed, ServiceNow plans to integrate Armis’ threat detection data into its broader cybersecurity offerings. “We take that information and monitor and do the security operations around it,” Zavery said in an interview. “For customers, we’ll be able to give them alerts and incident management and then any do triage services to make sure the incident doesn’t happen again.”
The deal comes amid a wave of consolidation in the cybersecurity industry, driven in part by the use of artificial intelligence to detect and prevent hacking attempts. According to Bloomberg, Alphabet Inc. agreed in March to acquire cloud security company Wiz Inc. for $32 billion in cash, while Palo Alto Networks Inc. struck a deal in July to buy CyberArk Software Ltd. for about $25 billion.
Armis has previously drawn strong interest from investors. Insight Partners acquired the company in 2020 in a $1.1 billion deal that included backers such as Alphabet’s CapitalG, per Bloomberg. More recently, private equity firm Thoma Bravo had explored a potential transaction, and Armis executives said last year that they were evaluating multiple offers for stakes in the business.
Source: Bloomberg
