ServiceNow Said to Be Negotiating Acquisition of Cybersecurity Startup Armis

ServiceNow, the enterprise‑software giant, is in advanced negotiations to acquire Armis, a fast‑growing cybersecurity startup that was most recently valued at $6.1 billion. Bloomberg reports that the deal could be worth as much as $7 billion, making it the largest acquisition in ServiceNow’s history.

Industry sources familiar with the talks, who asked to remain anonymous, say an announcement could come as early as this week, although the transaction remains subject to the usual regulatory and execution hurdles.

Both companies declined to comment on the potential deal at the time of publication.

Armis, which specializes in securing and managing internet‑connected devices across enterprise networks, raised $435 million in a funding round just over a month ago. The company has also disclosed plans to pursue an initial public offering in the near term.

CEO and co‑founder Yevgeny Dibrov indicated that Armis is targeting a public listing by the end of 2026 or early 2027, contingent on favorable market conditions. The decision to explore an acquisition rather than wait for an IPO reflects a broader trend among high‑growth technology firms as equity markets remain volatile and public‑market valuations stay uncertain.

Founded in 2016, Armis has quickly scaled its revenue base. In August, the company announced that it had crossed the $300 million annual recurring revenue (ARR) threshold, a milestone it reached less than a year after surpassing $200 million in ARR.

The latest financing round was led by the growth‑equity arm of Goldman Sachs Alternatives, with participation from CapitalG, the venture arm of Alphabet. Earlier investors have included Sequoia Capital and Bain Capital Ventures.

Strategic implications for ServiceNow

ServiceNow’s core platform enables organizations to automate workflows across IT, HR, customer service, and security operations. By integrating Armis’ device‑security technology, ServiceNow could offer a more holistic “everything‑as‑a‑service” (XaaS) portfolio that seamlessly blends endpoint management with broader process automation.

Analysts see several potential synergies:

• Cross‑sell opportunities: ServiceNow’s existing enterprise client base—spanning Fortune 500 companies—provides a ready channel for Armis’ visibility‑and‑response solutions, accelerating adoption rates.
• Data consolidation: Combining Armis’ real‑time device telemetry with ServiceNow’s AI‑driven analytics could improve risk scoring and automate remediation, lowering operational costs for customers.
• Competitive positioning: The acquisition would place ServiceNow against other platform players such as Microsoft and ServiceNow’s own rivals in the cloud security space, enhancing its defense‑in‑depth offering.

However, integration risks are not insignificant. Merging two fast‑moving engineering cultures can be challenging, and the success of the deal will hinge on retaining Armis’ talent and preserving its product‑roadmap momentum.

Market backdrop

The cybersecurity sector continues to benefit from heightened spending on “exposure management” as organizations grapple with the explosion of Internet of Things (IoT) devices, remote work, and supply‑chain vulnerabilities. IDC forecasts worldwide security spending to grow at a compound annual growth rate of 10 % through 2028, with device security representing a rapidly expanding sub‑segment.

At the same time, the IPO market has shown signs of fatigue. Recent attempts by high‑profile tech firms to go public have been met with muted demand, prompting many CEOs to explore strategic exits via M&A. In this environment, a $7 billion acquisition presents a relatively quick path for Armis to unlock value for its shareholders while providing ServiceNow with immediate scale.

Outlook

If the deal closes, ServiceNow is likely to announce an integration plan that embeds Armis’ device‑security capabilities into its Now Platform, potentially launching a new suite of security‑as‑a‑service offerings within the next 12‑18 months. Investors will be watching the transaction closely for clues about ServiceNow’s broader strategy to become a one‑stop shop for enterprise digital transformation.

While the acquisition remains subject to customary closing conditions, the move underscores the accelerating convergence of workflow automation and cybersecurity—a trend that could reshape the competitive landscape for both legacy software providers and pure‑play security firms.