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, particularly in the critical infrastructure sector.

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 attracted the attention of ServiceNow, which is looking to expand its cybersecurity offerings through the acquisition. Armis provides security software for critical infrastructure to Fortune 500 companies and governments, and its technology will complement ServiceNow's existing portfolio.

The acquisition is a significant milestone in a busy year for ServiceNow, which has already scooped up Moveworks for $2.85 billion and agreed to acquire cybersecurity startup Veza for $1 billion. Armis has raised a total of $1.45 billion in venture capital from investors, including Sequoia and Coatue.

The cybersecurity market has been growing rapidly in recent years, driven by increasing concerns over data breaches and cyber threats. The acquisition of Armis by ServiceNow reflects the growing importance of cybersecurity in the enterprise software landscape. Armis's technology will help ServiceNow expand its reach into the critical infrastructure sector, where companies are increasingly looking for robust security solutions.

Armis was founded in 2015 by Yevgeny Dibrov, who had previously told TechCrunch that the company aimed to go public in late 2026 or 2027. However, the unpredictability of IPO markets and the limited number of cybersecurity companies that go public have likely influenced Armis's decision to pursue a merger and acquisition exit. The acquisition by ServiceNow provides Armis with a more stable and secure future, while also giving ServiceNow a significant boost in its cybersecurity offerings.

The acquisition is expected to have a positive impact on the cybersecurity market, as it brings together two leading players in the space. ServiceNow's existing customer base will benefit from Armis's technology, while Armis will gain access to ServiceNow's extensive resources and expertise. The deal is likely to set a new benchmark for cybersecurity acquisitions, and its impact will be closely watched by the industry.

In conclusion, the acquisition of Armis by ServiceNow marks a significant development in the cybersecurity market. The deal reflects the growing importance of cybersecurity in the enterprise software landscape and sets a new benchmark for acquisitions in the space. As the cybersecurity landscape continues to evolve, companies like ServiceNow and Armis will play a crucial role in shaping the future of security solutions.