According to sources, ServiceNow is in advanced negotiations to acquire cybersecurity company Armis. The latter focuses primarily on exposure management. The deal could be worth up to $7 billion and may be announced within the next few days.
Bloomberg reported last Saturday that ServiceNow is in talks with Armis about an acquisition that would be the largest in the company’s history. Two weeks ago, ServiceNow announced the acquisition of data security platform Veza for reportedly more than $1 billion.
The talks are at an advanced stage, but a deal could still fall through or another potential bidder could come forward, according to sources who wished to remain anonymous due to the confidential nature of the negotiations. Neither ServiceNow nor Armis has commented on the reports.
Ambitious acquisition strategy
In addition to Veza, the company previously acquired AI firm Moveworks for $2.85 billion earlier this year. This is clearly part of its push toward AI tools that can complete tasks without human supervision. CEO Bill McDermott emphasizes that AI does not pose a threat to business software, but rather offers opportunities through close collaboration between AI models and integrated business solutions. Completely replacing CRMs and ITSM platforms therefore seems unrealistic.
Armis brings cyber exposure management
Armis, founded in 2015 by veterans of the Israeli intelligence services, focuses on protecting modern business environments. The company offers visibility, risk management, and real-time security for all connected assets. This includes traditional IT equipment as well as newer IoT and OT systems. Back in 2022, we wrote an extensive article about Armis, highlighting how it was a well-kept secret in our region at the time. Under ServiceNow’s ownership, we suspect the Armis feature set will reach a far larger global stage.
Also read: Armis Security provides insight into IT, OT and IoT vulnerabilities
The Armis Centrix cloud-native security platform continuously monitors an organization’s entire digital attack surface, including inventorying all asset types and tracking device behavior. The solution assesses risks on an agentless basis, so nothing needs to be installed on an endpoint. An AI engine aggregates behavioral data from billions of devices worldwide to classify devices, detect anomalies, and automatically alert when assets deviate from secure baselines.
Armis works with companies in a wide range of sectors, from healthcare to manufacturing, government, and critical infrastructure. Its customers include Nasdaq, Mondelez International, United Airlines, the Port of Antwerp-Bruges, Colgate-Palmolive, and DocuSign.
Substantial investment rounds prior to deal
The company has raised $1.17 billion to date across seven investment rounds. After rounds of $17 million in 2017, $30 million in 2018, and $65 million in 2019, Insight Partners took a majority stake in 2020. This was followed by three more large rounds: $300 million at a valuation of $3.4 billion in November 2021, $200 million at a valuation of $4.2 billion in October 2024, and last month a final round of $435 million led by Alphabet’s CapitalG.
CEO Yevgeny Dibrov announced in early August that the company had reached $300 million in annual recurring revenue, up from $200 million a year earlier. At that time, the company was still aiming for an IPO in 2026.