ServiceNow Agrees to Acquire Cybersecurity Startup Armis for $7.75 Billion

In a significant move, Enterprise software company ServiceNow has agreed to acquire cybersecurity startup Armis for $7.75 billion in cash. This deal marks a substantial valuation jump for Armis, which had raised a $435 million pre-IPO funding round just last month, valuing the company at $6.1 billion. The acquisition is a testament to the growing demand for cybersecurity solutions and the increasing importance of securing critical infrastructure.

The financial details of the deal reveal that Armis has reached $340 million in annual recurring revenue (ARR), with year-over-year growth exceeding 50%. This impressive growth trajectory has likely contributed to ServiceNow's decision to acquire the company. Armis, which provides security software for critical infrastructure to Fortune 500 companies and governments, will help ServiceNow expand its cybersecurity offerings.

The acquisition is not surprising, given the unpredictability of IPO markets and the relatively low number of cybersecurity companies that go public. Armis co-founder and CEO Yevgeny Dibrov had expressed his desire to take the company public in late 2026 or 2027, but an acquisition exit appears to be a more attractive option. This decision allows Armis to accelerate its growth and expansion plans, while also providing ServiceNow with a significant boost to its cybersecurity capabilities.

Armis has raised a total of $1.45 billion in venture capital from investors, including Sequoia, Coatue, and Redpoint Ventures. The company's security software is designed to detect and prevent threats to critical infrastructure, making it an attractive addition to ServiceNow's portfolio.

The acquisition caps off a busy year for ServiceNow, which has scooped up Moveworks for $2.85 billion and agreed to acquire cybersecurity startup Veza for $1 billion. This series of acquisitions underscores ServiceNow's commitment to expanding its offerings in the cybersecurity space.

The deal is expected to have a significant impact on the cybersecurity industry, as ServiceNow and Armis combine their resources and expertise to provide more comprehensive security solutions. The acquisition will also create new opportunities for Armis to expand its customer base and reach new markets.

As the cybersecurity landscape continues to evolve, companies like Armis and ServiceNow are well-positioned to capitalize on the growing demand for security solutions. The acquisition of Armis is a strategic move by ServiceNow to strengthen its position in the market and provide its customers with more robust security capabilities.

In the coming months and years, we can expect to see ServiceNow and Armis work together to integrate their products and services, creating a more comprehensive security offering for customers. This partnership will likely lead to new innovations and advancements in the cybersecurity space, as the two companies combine their expertise and resources to address the complex security challenges facing organizations today.