ServiceNow announced a $7.75 billion cash acquisition of cybersecurity startup Armis on Tuesday, marking its largest deal to date. The enterprise software company will fund the transaction through cash reserves and debt, with completion expected in the second half of 2026 pending regulatory approval.
Armis specializes in cyber exposure management and cyber-physical security, protecting IT systems, operational technology, medical devices, and industrial equipment for Fortune 500 companies and government agencies. The nine-year-old startup surpassed $340 million in annual recurring revenue with year-over-year growth exceeding 50%, according to ServiceNow's announcement.
The acquisition represents a significant valuation jump for Armis, which secured a $435 million pre-IPO funding round in November that valued the company at $6.1 billion. Armis co-founder and CEO Yevgeny Dibrov had previously targeted a public listing in late 2026 or 2027, telling TechCrunch last month that an IPO was his "personal dream."
ServiceNow shares fell nearly 3% following the announcement as investors reacted to the company's aggressive acquisition strategy. The company completed a $2.85 billion purchase of AI assistant platform MoveWorks in March and agreed to acquire identity security firm Veza for $1 billion earlier this month.
"This decision reinforces our strategy to deepen security context on the ServiceNow AI platform," said Amit Zavery, ServiceNow's president and chief product officer, in a LinkedIn post. "Customers can reduce risk proactively as AI adoption accelerates."
Armis protects critical infrastructure for Global 2000 enterprises, including more than 35% of Fortune 100 companies and seven of the Fortune 10. The company's agentless discovery technology identifies managed and unmanaged assets across traditional IT, operational technology, IoT, and medical systems that conventional security tools often miss.
ServiceNow's Security and Risk business crossed the $1 billion annual contract value threshold in the third quarter of 2025. The company estimates the Armis acquisition will more than triple its market opportunity for security solutions and accelerate its roadmap toward autonomous, proactive cybersecurity.
The combined platform will create an end-to-end security operations stack connecting real-time asset discovery, threat intelligence, and risk prioritization with automated remediation workflows. ServiceNow plans to integrate Armis' capabilities with its AI Control Tower, which manages AI governance across enterprise environments.
"AI is transforming the threat landscape faster than most organizations can adapt," said Dibrov in a statement. "Every connected asset has become a potential point of vulnerability. Together with ServiceNow, customers will have a powerful new way to reduce their exposure and strengthen security at scale."
The cybersecurity acquisition trend continues amid rising AI-driven threats. Google parent Alphabet agreed to acquire cloud security firm Wiz for $32 billion in March, while Palo Alto Networks announced a $25 billion deal for CyberArk Software in July. Global information security spending is projected to increase 12.5% in 2026 to $240 billion, according to Gartner research.
Armis was founded in 2015 by Israeli intelligence veterans and employs approximately 950 people. The company will join ServiceNow upon deal completion, with Tidal Partners serving as ServiceNow's lead financial advisor alongside J.P. Morgan Securities and Barclays.
