ServiceNow to acquire cybersecurity firm Armis for $7.75 billion

Enterprise software company ServiceNow has agreed to acquire the nine-year-old cybersecurity startup Armis for $7.75 billion in cash. The transaction represents a major valuation jump for Armis, which was valued at $6.1 billion just last month. That valuation was established during a $435 million pre-IPO funding round. Over its nine years of operation, Armis has raised a total of $1.45 billion in venture capital. The startup’s investor base includes venture capital firms such as Sequoia, CapitalG, and Insight Partners, all of whom backed the company prior to this acquisition agreement.

According to ServiceNow, Armis has reached $340 million in annual recurring revenue (ARR), with year-over-year growth exceeding 50%. This financial performance highlights the company’s growth trajectory prior to the acquisition. The decision to sell comes shortly after Armis co-founder and CEO Yevgeny Dibrov stated last month that the company aimed to go public in late 2026 or 2027. Dibrov had noted that an initial public offering (IPO) was his “personal dream.” However, the company has instead agreed to a mergers and acquisitions (M&A) exit, choosing the cash acquisition over its planned public market debut.

The $7.75 billion deal caps off a busy year of acquisitions for ServiceNow, which has actively expanded its enterprise and security capabilities. The company’s recent acquisitions include:

• Moveworks: An acquisition completed for $2.85 billion.
• Veza: A cybersecurity startup that ServiceNow agreed to acquire for $1 billion.

Armis provides security software for critical infrastructure to Fortune 500 companies and governments. Integrating these capabilities will help ServiceNow expand its broader cybersecurity offerings. The acquisition allows ServiceNow to incorporate Armis’s security software into its existing portfolio, enhancing its ability to protect critical infrastructure for its enterprise and government clients.

Why it matters

The acquisition of Armis for $7.75 billion marks a significant valuation jump for the cybersecurity startup and expands ServiceNow’s cybersecurity offerings following a year of active acquisitions.