(Bloomberg) –ServiceNow has reached a deal to buy the cybersecurity startup Armis in a deal valued at $7.75 billion, representing its largest acquisition to date.
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The Santa Clara, California-based enterprise tech company will pay in cash for San Francisco-based Armis, according to a statement Tuesday that confirmed an earlier Bloomberg News report.
Shares in ServiceNow fell about 1.3% in early trading before markets opened in New York. They closed up around 0.9% on Monday, giving the company a market valuation of about $163 billion.
ServiceNow said in a statement it expects to fund the transaction through a combination of cash on hand and debt. The deal is expected to close in the second half of 2026, pending regulatory approvals and closing conditions, the statement said.
Founded by veterans of Israeli military cyber intelligence, San Francisco-based Armis specializes in identifying and tracking security threats on devices, working across a range of industries, including medical, financial services and defense.
In early August, Armis’ chief executive officer, Yevgeny Dibrov, said the company had reached $300 million in annual recurring revenue, up from $200 million a year ago, and that it was still eyeing a public listing in 2026.
ServiceNow, which provides software that helps companies organize and automate their personnel and information technology operations, has become a dominant platform for enterprise workflow. In March, ServiceNow struck an agreement to buy the artificial intelligence firm Moveworks for $2.85 billion as part of its push into AI tools that can complete tasks without human supervision.
“ServiceNow is building the security platform of tomorrow,” Amit Zavery, ServiceNow’s president, chief operating officer and chief product officer, said in a statement Tuesday.
Upon completion of the deal, ServiceNow will integrate data from Armis’ threat prevention services into its larger cybersecurity suite, enhancing clients’ ability to fend off cyberattacks, Zavery said in an interview.
“We take that information and monitor and do the security operations around it,” he said. “For customers, we’ll be able to give them alerts and incident management and then any do triage services to make sure the incident doesn’t happen again.”
The deal for Armis follows a slew of acquisitions in the cybersecurity sector, a trend fueled by the growing use of AI to detect hacking threats. In March, Google parent Alphabet agreed to acquire cloud security firm Wiz for $32 billion in cash. In July, Palo Alto Networks agreed to buy CyberArk Software in a deal valuing the Israeli company at about $25 billion.
Insight Partners agreed to acquire Armis in 2020 in a $1.1 billion deal that included other investors, such as Alphabet’s CapitalG.
Private equity giant Thoma Bravo had previously eyed a potential deal with Armis, and the startup’s executives said in September that they’d been weighing around six to seven offers from investors for a stake in the company.
