ServiceNow to Acquire Cybersecurity Firm Armis in $7.75 Billion Cash Deal

ServiceNow announced on Tuesday that it will acquire cybersecurity startup Armis in a cash transaction valued at approximately $7.75 billion.

The enterprise software company said the acquisition will significantly expand its cybersecurity capabilities in the age of artificial intelligence and more than triple its market opportunity in security and risk solutions.

“Together with Armis, we will deliver an industry-defining strategic cybersecurity shield for real-time, end-to-end proactive protection across all technology estates,” said president and chief product and operating officer Amit Zavery.

The deal is expected to close in the second half of next year and will be financed through a combination of cash and debt. ServiceNow shares fell about 2% in premarket trading following the announcement.

Armis Growth and Strategic Context

Earlier this month, Bloomberg reported that Armis was exploring a potential deal with ServiceNow at a valuation of around $7 billion. In November, the California-based company raised $435 million at a $6.1 billion valuation.

Armis helps organizations secure internet-connected devices against cyber risks. At the time of its latest funding round, co-founder and CEO Yevgeny Dibrov said the company was targeting a potential IPO in 2026 or 2027, with a longer-term goal of surpassing $1 billion in annual recurring revenue.

ServiceNow disclosed that Armis has now exceeded $340 million in annual recurring revenue, representing 50% year-over-year growth, up from $300 million reported in August.

Cybersecurity M&A Momentum

The acquisition comes amid renewed momentum in large-scale cybersecurity deals, as companies increase spending to defend against more sophisticated, AI-driven threats.

This year has already seen major transactions in the sector, reflecting how large technology firms are prioritizing threat detection, cyber exposure management, and AI-driven security platforms.

With IPO markets only gradually reopening, many high-growth technology firms continue to remain private longer or pursue strategic exits through acquisitions.