ServiceNow nears potential $7 Billion acquisition of cybersecurity firm Armis

ServiceNow Inc. (NOW) is in advanced discussions to acquire cybersecurity startup Armis in a transaction that could be valued at up to $7 billion.

The deal would be ServiceNow’s largest acquisition to date. People familiar with the matter said an announcement could come in the next few days, though talks may still collapse or another bidder could emerge.

The discussions are private, according to the people, who requested anonymity. A spokesperson for ServiceNow declined to comment, and an Armis representative did not immediately respond.

Shares of ServiceNow fell about 0.3% in New York trading on Friday. The Santa Clara, California-based company had a market value of roughly $179.5 billion at the close.

Armis is based in San Francisco and was founded by veterans of Israeli military cyber intelligence. The company focuses on identifying and tracking security threats across connected devices.

Its technology is used in multiple industries, including healthcare, financial services, and defense. Armis works to monitor risks across devices that are often difficult for traditional security tools to manage.

In early August, Chief Executive Officer Yevgeny Dibrov said Armis had reached $300 million in annual recurring revenue. That figure was up from $200 million a year earlier.

Dibrov also said at the time that the company was still planning for an initial public offering in 2026. Armis has continued to draw interest from both strategic and financial buyers.

ServiceNow provides software designed to help companies organize and automate employee workflows and information technology operations. The company has grown into a major enterprise platform.

Like other large technology firms, ServiceNow has been adding generative artificial intelligence features to its products. In March, it agreed to buy AI startup Moveworks Inc. for $2.85 billion.

A purchase of Armis would place ServiceNow among technology companies expanding into cybersecurity. In March, Alphabet Inc.’s Google agreed to acquire cloud security firm Wiz Inc. for $32 billion in cash.

In July, Palo Alto Networks Inc. announced a deal to buy CyberArk Software Ltd. valuing the Israeli company at about $25 billion.

Insight Partners acquired Armis in 2020 in a $1.1 billion transaction that included investors such as Alphabet’s CapitalG. Private equity firm Thoma Bravo had also previously considered a deal.