A sign outside ServiceNow headquarters on Thursday, September 4, 2025, in Santa Clara, California.
David Paul Morris | Bloomberg | Getty Images
ServiceNow will acquire cybersecurity startup Armis in a cash deal valued at $7.75 billion, the company announced Tuesday.
The enterprise software company said the partnership will strengthen its cybersecurity capabilities in the age of artificial intelligence and more than triple the market opportunity for security and risk solutions.
“We are working with Armis to deliver an industry-defining strategic cybersecurity shield that proactively protects all technology assets end-to-end in real-time,” Amit Zaveri, president and head of products and operations, said in the release.
ServiceNow said it will finance the transaction with a combination of cash and debt and expects to close in the second half of next year.
Stocks were down about 2% before the bell.
Bloomberg first reported earlier this month that Armis was considering a potential $7 billion deal with ServiceNow.
The California-based company, which helps companies protect internet-connected devices from cyber risks, announced in November that it had raised $435 million at a valuation of $6.1 billion.
At the time, co-founder Evgeny Dibrov told CNBC that Armis was aiming to go public in 2026 or 2027, but that its main goal was to generate more than $1 billion in annual recurring revenue.
“The need for what Armis is doing and what we’re building in this cyber exposure management and security platform is only going to grow,” he said, adding that there is “very unique and huge” demand for the company’s tools.
As the turbulent initial public offering market begins to recover, many companies are choosing to stay private longer or be acquired. Large companies like Stripe and Databricks have found an influx of capital into private markets.
In the age of AI, businesses are investing more in cybersecurity to protect against increasingly sophisticated threats.
This year has also been a significant year for major cybersecurity deals as companies look to strengthen their threat defense capabilities. This includes Google’s $32 billion acquisition of cloud security startup Wiz and Palo Alto Networks’ $25 billion deal for CyberArk.
According to ServiceNow, Armis’ annual recurring revenue rose 50% year over year to more than $340 million, up from the $300 million announced in August.
