ServiceNow (NOW) Secures Armis in $7.75 Billion Deal

• ServiceNow (NYSE: NOW) is acquiring cybersecurity startup Armis for $7.75 billion in cash, its largest deal to date, to integrate advanced device scanning, threat detection, and vulnerability prioritization into its AI-powered platform.
• The acquisition supports ServiceNow’s recent expansion in security and AI, following purchases of Moveworks for $2.85 billion, Logik.ai for $506 million, and Veza, amid projections of global information security spending reaching $240 billion in 2026 with a 12.5% increase.
• Armis, valued at $6.1 billion in its latest funding round and recently surpassing $300 million in annual recurring revenue, was preparing for an IPO before the deal, which is expected to close in the second half of 2026.

ServiceNow (NYSE: NOW) has entered into a definitive agreement to acquire Armis, a prominent cybersecurity startup founded in 2015, for $7.75 billion in cash. This transaction represents the company’s most significant acquisition to date and underscores its commitment to enhancing cybersecurity capabilities within its AI-powered platform. The integration of Armis’ specialized features, including device scanning, threat detection, and vulnerability prioritization, will provide comprehensive real-time protection across diverse technology environments, addressing the escalating complexity of cyber threats that have impacted major corporations such as Microsoft (MSFT) and UnitedHealth Group (UNH).

Armis, which achieved a $6.1 billion valuation following a funding round in November led by Goldman Sachs’ (GS) alternative investment platform with participation from CapitalG, Alphabet’s (GOOGL) venture capital arm, had been positioning itself for an initial public offering. The startup recently surpassed the $300 million milestone in annual recurring revenue in August and outlined a three-year strategy to reach $1 billion in annual recurring revenue. This growth trajectory highlights the robust demand for advanced cyber exposure management solutions that deliver visibility and security across IT, operational technology, internet of things, and medical devices.

The acquisition aligns with broader industry trends, where security remains the top priority for chief executives as organizations increasingly adopt artificial intelligence. Worldwide end-user spending on information security is projected to increase 12.5% in 2026 to $240 billion, driven primarily by rising threats and the widespread implementation of AI and generative AI technologies.

Amit Zavery, president, chief operating officer, and chief product officer at ServiceNow, emphasized the strategic importance of the deal, stating that the company is building the security platform of the future. In the era of agentic AI, intelligent trust and governance across clouds, assets, AI systems, and devices are essential for sustainable AI scaling. The combination with Armis will enable an advanced cybersecurity framework offering proactive, end-to-end protection that transcends traditional silos, fully embedded within the ServiceNow AI Platform.

This move extends ServiceNow’s recent series of targeted acquisitions aimed at bolstering its offerings in security, AI, and customer relationship management. The company completed its $2.85 billion purchase of Moveworks this month, allocated $506 million for Logik.ai (formerly Logik.io), and acquired security firm Veza with undisclosed terms. These investments reflect a deliberate expansion to accelerate capabilities in sales automation, order management, AI-driven workflows, and risk mitigation.

Market reaction to initial reports of the potential deal was notable, with ServiceNow shares declining nearly 12% on December 15, resulting in an approximate $20 billion reduction in market value as investors evaluated the implications of substantial capital deployment in the cloud software sector. The transaction is anticipated to close in the second half of 2026, subject to customary conditions.

Price Action:

ServiceNow, the Santa Clara, California‑based company with a market capitalization of $161 billion, is currently trading 1.68% lower at $154.05.

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