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ServiceNow has agreed to acquire cybersecurity startup Armis for $7.75 billion, marking the enterprise software company’s largest acquisition to date as it strengthens its security portfolio amid a surge in AI-driven cyber threats.
The deal, announced on Tuesday, is aimed at expanding ServiceNow’s security and risk management offerings by integrating Armis’ capabilities in device discovery, real-time threat detection and asset intelligence. Armis’ technology focuses on securing unmanaged and connected devices across enterprises, an area that has gained urgency as organizations face increasingly sophisticated cyberattacks.
ServiceNow said the acquisition will significantly expand the addressable market for its security and risk business, which the company expects to triple once the transaction is completed. The deal is expected to close in the second half of 2026, subject to regulatory approvals and customary closing conditions.
Despite the strategic rationale, ServiceNow shares fell about 3% following the announcement, reflecting investor concerns over the company’s recent pace of acquisitions. In recent months, ServiceNow has completed or announced several high-profile deals, including the $2.85 billion acquisition of AI firm Moveworks, along with purchases of security company Veza and sales automation platform Logik.ai.
ServiceNow Chief Financial Officer Gina Mastantuono said the Armis acquisition would complete the company’s security stack, reducing the need for further mergers and acquisitions in the cybersecurity space. She told Reuters that ServiceNow believes its security portfolio will be well positioned following the deal.
Armis, founded in 2015, had been preparing for an initial public offering before entering talks with ServiceNow. The company was valued at $6.1 billion in a funding round in November, led by Goldman Sachs’ alternative investment platform, with participation from existing investor CapitalG, the venture capital arm of Alphabet.
The startup recently outlined a three-year growth plan targeting $1 billion in annual recurring revenue, after surpassing the $300 million ARR milestone earlier this year. Armis counts more than 40% of Fortune 100 companies among its customers and has positioned itself as a key player in enterprise-wide cyber exposure management.
The acquisition underscores the growing urgency among enterprise software vendors to embed advanced security capabilities into their platforms as AI adoption expands attack surfaces and raises the stakes for digital resilience.
The deal, announced on Tuesday, is aimed at expanding ServiceNow’s security and risk management offerings by integrating Armis’ capabilities in device discovery, real-time threat detection and asset intelligence. Armis’ technology focuses on securing unmanaged and connected devices across enterprises, an area that has gained urgency as organizations face increasingly sophisticated cyberattacks.
ServiceNow said the acquisition will significantly expand the addressable market for its security and risk business, which the company expects to triple once the transaction is completed. The deal is expected to close in the second half of 2026, subject to regulatory approvals and customary closing conditions.
Despite the strategic rationale, ServiceNow shares fell about 3% following the announcement, reflecting investor concerns over the company’s recent pace of acquisitions. In recent months, ServiceNow has completed or announced several high-profile deals, including the $2.85 billion acquisition of AI firm Moveworks, along with purchases of security company Veza and sales automation platform Logik.ai.
ServiceNow Chief Financial Officer Gina Mastantuono said the Armis acquisition would complete the company’s security stack, reducing the need for further mergers and acquisitions in the cybersecurity space. She told Reuters that ServiceNow believes its security portfolio will be well positioned following the deal.
Armis, founded in 2015, had been preparing for an initial public offering before entering talks with ServiceNow. The company was valued at $6.1 billion in a funding round in November, led by Goldman Sachs’ alternative investment platform, with participation from existing investor CapitalG, the venture capital arm of Alphabet.
The startup recently outlined a three-year growth plan targeting $1 billion in annual recurring revenue, after surpassing the $300 million ARR milestone earlier this year. Armis counts more than 40% of Fortune 100 companies among its customers and has positioned itself as a key player in enterprise-wide cyber exposure management.
The acquisition underscores the growing urgency among enterprise software vendors to embed advanced security capabilities into their platforms as AI adoption expands attack surfaces and raises the stakes for digital resilience.
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