ServiceNow Nears $7 Billion Acquisition of Cybersecurity Startup Armis
Enterprise software giant ‘ServiceNow’ is in advanced negotiations to acquire cybersecurity startup ‘Armis’ in a deal that could value the company at approximately $7 billion. This potential transaction marks a massive strategic pivot for the workflow automation vendor, signaling a direct entry into the high-stakes market of digital asset security and exposure management. If completed, the purchase would stand as the largest acquisition in the company’s history, significantly surpassing its previous deal for ‘Moveworks’.
The discussions, which insiders suggest could lead to an official announcement within days, center on integrating the ‘Armis’ platform’s ability to discover and secure unmanaged devices. Unlike traditional security tools that require software agents to be installed on endpoints, the startup’s technology provides visibility into the exploding number of Internet of Things (IoT) devices, industrial control systems, and medical equipment connecting to corporate networks. This capability addresses a critical blind spot for large enterprises where invisible assets often serve as entry points for cyberattacks.
‘Armis’ has seen rapid growth, recently surpassing $300 million in annual recurring revenue with a year-over-year growth rate exceeding 50 percent. The San Francisco-based company, which has deep roots in Israeli cyber intelligence, had been actively preparing for an initial public offering in 2026. Only last month, it closed a $435 million funding round that valued the firm at $6.1 billion, backed by ‘General Atlantic’ and ‘Goldman Sachs’. A sale to ‘ServiceNow’ would effectively preempt those public market ambitions.
For ‘ServiceNow’, the move represents an aggressive expansion of its “platform of platforms” strategy, aiming to unify IT operations and security response. By ingesting real-time asset data from ‘Armis’ directly into its configuration management database, the company could offer customers an automated way to identify vulnerabilities and trigger remediation workflows without human intervention. This integration is particularly relevant for federal and industrial clients who manage complex, aging infrastructure alongside modern digital systems.
Market reaction to the leaked talks has been mixed, with ‘ServiceNow’ stock dropping nearly 11 percent as investors weighed the heavy price tag against the potential synergies. Analysts note that while the strategic logic of combining asset visibility with automated workflow is sound, the execution risks of such a large integration are substantial. The deal remains fluid, and sources caution that negotiations could still collapse or face disruption from a competing bidder.
