ServiceNow to Acquire Cybersecurity Startup Armis for $7.75 Billion
ServiceNow announced its intent to acquire cybersecurity startup Armis in an all-cash deal valued at $7.75 billion, a move poised to significantly bolster the enterprise software giant’s security offerings in an increasingly complex digital landscape. The acquisition, expected to close in the second half of next year, signals ServiceNow’s aggressive strategy to enhance its capabilities, particularly in the rapidly evolving era of artificial intelligence.
The deal aims to more than triple ServiceNow’s addressable market for security and risk solutions. “This is about making a strategic move to accelerate growth, and we see the opportunity for our customers,” stated ServiceNow CEO Bill McDermott in a recent interview. “In this AI world, especially with the emergence of autonomous agents, protecting enterprises from sophisticated intrusions is paramount, as each breach can translate into substantial financial losses.”
This acquisition marks the latest in a series of strategic moves by ServiceNow in 2025, designed to accelerate its growth trajectory. Earlier this year, the company acquired the AI agent platform Moveworks for $2.85 billion in March, followed by the acquisition of identity security platform Veza at the beginning of December. McDermott emphasized that these acquisitions are converging to create a singular “AI control tower” capable of driving workflows, actions, and business outcomes across diverse environments.
Armis, a California-based company specializing in protecting internet-connected devices from cyber risks, was reportedly exploring a deal with ServiceNow valued around $7 billion, according to earlier reports. In November, Armis announced a $435 million funding round at a $6.1 billion valuation. At the time, co-founder Yevgeny Dibrov indicated plans for a potential IPO in 2026 or 2027, with a primary goal of surpassing $1 billion in annual recurring revenue. Dibrov highlighted the escalating demand for Armis’s cyber exposure management and security platform, noting “very unique and huge” market need for its solutions.
The cybersecurity M&A landscape has seen significant activity in 2025, driven by the growing sophistication of cyber threats amplified by AI. Major deals include Google’s $32 billion acquisition of cloud security startup Wiz and Palo Alto Networks’ $25 billion acquisition of CyberArk. These trends reflect a broader industry push for enhanced threat protection capabilities.
ServiceNow reported that Armis has achieved over $340 million in annual recurring revenue, demonstrating a robust 50% year-over-year growth. This figure represents an increase from the $300 million disclosed in August, underscoring Armis’s strong market traction and the significant value ServiceNow sees in its technology and customer base. The acquisition of Armis is expected to further solidify ServiceNow’s position as a leader in enterprise workflow automation and expand its footprint in the critical cybersecurity market.
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