ServiceNow is in advanced talks to acquire cybersecurity startup Armis in a deal that could be valued at as much as $7 billion, according to Bloomberg.
The transaction would mark the largest acquisition in ServiceNow’s history and signal a decisive push to embed security deeper into enterprise software stacks.
Armis was last valued at $6.1 billion and focuses on securing and managing internet-connected devices — a fast-growing attack surface as companies deploy everything from laptops and servers to medical equipment, industrial sensors, and operational technology systems. The discussions are private and could still fall apart, but people familiar with the matter said a deal could be announced as soon as this week.
If completed, the acquisition would significantly expand ServiceNow’s cybersecurity footprint. The company is best known for its workflow automation and IT service management software, which is widely used by large enterprises to manage incidents, employees, and digital operations. Bringing Armis into that ecosystem would allow ServiceNow to pair workflow automation with real-time visibility into connected assets, helping customers identify vulnerabilities, prioritize threats, and automate responses across complex environments.
The talks come at a time when cybersecurity is shifting from a standalone function to a foundational layer of enterprise operations. The proliferation of connected devices, cloud migration, and the growing use of artificial intelligence have broadened attack surfaces, pushing companies to seek more integrated and automated security solutions. For ServiceNow, owning a platform like Armis could reduce reliance on third-party integrations and strengthen its pitch as a one-stop platform for digital operations and risk management.
For Armis, a sale would represent a change in trajectory, though not an unusual one in the current market. Just over a month ago, the company raised $435 million in a funding round led by Goldman Sachs Alternatives’ growth equity fund, with participation from CapitalG, Alphabet’s venture arm. At the time, Armis publicly discussed plans for an initial public offering.
Chief executive and co-founder Yevgeny Dibrov told CNBC that the company was targeting a listing in late 2026 or early 2027, depending on market conditions. Choosing a strategic acquisition instead of waiting for an IPO reflects a broader trend among late-stage startups, many of which are wary of volatile equity markets, compressed valuations, and the risk of underwhelming public debuts.
Founded in 2016, Armis has demonstrated strong growth. In August, the company said it had surpassed $300 million in annual recurring revenue, reaching that level less than a year after crossing $200 million in ARR. That rapid expansion, combined with its focus on securing unmanaged and hard-to-monitor devices, has made Armis one of the more attractive assets in the cybersecurity space.
Its investor base underscores that appeal. In addition to Goldman Sachs Alternatives and CapitalG, previous backers include Sequoia Capital and Bain Capital Ventures, firms known for backing companies with either IPO-scale ambitions or strategic acquisition potential. A $7 billion deal would likely deliver a significant return for those investors, particularly given the still-uncertain outlook for tech listings.
The price tag is expected to represent a substantial commitment for ServiceNow, but one aligned with its longer-term strategy. The company has been steadily expanding beyond IT service management into broader enterprise workflows, including security operations, governance, risk, and compliance. Acquiring Armis could accelerate that expansion by adding a high-growth security platform and a customer base that overlaps with ServiceNow’s core enterprise clientele.
The potential transaction also highlights accelerating consolidation in cybersecurity, as large software vendors seek to own critical capabilities rather than rely on partnerships. As cyber threats become more complex and regulators demand stronger controls, enterprises are increasingly favoring integrated platforms that can tie security insights directly into operational and executive decision-making.
Whether or not the deal is finalized, the talks underline the strategic value of cybersecurity startups with scale, recurring revenue, and clear enterprise relevance. In a market where IPO windows remain unpredictable, acquisition discussions like this are becoming a primary exit path — and a signal that large software companies are prepared to pay a premium for assets they see as essential to their next phase of growth.
