ServiceNow Moves to Acquire Armis in Largest Deal to Date

ServiceNow is close to finalizing a deal to acquire cybersecurity startup Armis for as much as $7 billion, according to a report from Bloomberg. The agreement, if completed, would be ServiceNow’s largest acquisition to date and a significant addition to its growing portfolio of security-focused products.

These talks follow a recent $435 million funding round that valued Armis at $6.1 billion and came with plans to prepare for a public listing.

Armis was founded in 2016 by Yevgeny Dibrov and Nadir Izrael, both veterans of Israeli cyber intelligence.

The company specializes in securing internet-connected devices and operational technology used in industries where visibility and control are often limited. It has become a notable provider of tools for healthcare systems, financial institutions, defense contractors, and telecommunications firms.

By offering automated monitoring and risk response for unmanaged devices, Armis helps address a specific category of security threats that traditional systems often overlook.

Why It Matters: As threats become harder to detect, companies are turning to tools that can spot risks early and respond without delay. In environments where devices are difficult to monitor, manual oversight falls short. Automation is quickly becoming a necessary layer of defense.

• Armis IPO Plans on Hold as Acquisition Talks Progress: After raising hundreds of millions in new capital and stating plans to go public within two years, Armis now appears likely to change course. The startup had been building toward a listing by late 2026 or early 2027, but ongoing volatility in public markets has made exits through acquisition more attractive. Investors involved in the recent funding round, including CapitalG, Goldman Sachs, and Sequoia Capital, were backing a long-term growth plan that now may play out under ServiceNow’s umbrella.

• A New Direction for ServiceNow: Known for enterprise workflow tools, ServiceNow has been expanding its offerings beyond internal operations and into areas like security and risk prevention. Acquiring Armis would move the company further into enterprise cybersecurity, with a product designed to protect a category of devices that are difficult to secure through traditional means.

• Device Security as a Priority: Armis focuses on endpoints that fall outside conventional IT categories. These include medical devices and industrial sensors, which are often overlooked by older security tools. Many operate without built-in protection or consistent oversight. Armis identifies these assets, tracks their behavior, and responds automatically when threats are detected.

• AI in Cybersecurity Is No Longer Experimental: Research from PYMNTS shows that more than half of surveyed COOs now use AI-driven systems to manage digital threats, a sharp increase in just a few months. These tools help detect fraud and respond without delay. Armis has built its platform on similar principles, and its growth from $200 million to $300 million in recurring revenue over the past year shows how quickly demand is rising.

• Mergers and Acquisitions Are Reshaping the Industry: ServiceNow is not alone in pursuing security companies. The year has seen several major deals, including Google’s $32 billion acquisition of cloud security firm Wiz. Companies are buying technology that would be difficult or time-consuming to build on their own. For startups like Armis, the opportunity to scale through an acquisition offers a faster way to reach more customers while avoiding the uncertainty of public markets.

Go Deeper -> ServiceNow in talks to acquire cybersecurity startup Armis in potential $7 billion deal, Bloomberg reports – CNBC

ServiceNow Eyes $7 Billion Deal for Cybersecurity Startup Armis – PYMNTS