Software company ServiceNow is reportedly in advanced talks to acquire cybersecurity startup Armis. The deal could be valued as high as $7 billion, making it ServiceNow’s largest acquisition to date.
Armis was last valued at $6.1 billion and recently raised $435 million in a funding round. The startup specializes in securing and managing internet-connected devices against cyber threats.
Sources familiar with the discussions, speaking on condition of anonymity due to the private nature of the talks, told Bloomberg the announcement could come as soon as this week. However, the deal is not guaranteed and could still fall apart.
Armis CEO and co-founder Yevgeny Dibrov had publicly aimed for an initial public offering by the end of 2026 or early 2027, depending on market conditions. The startup’s decision to pursue a sale reflects a wider trend where companies avoid choppy IPO markets.
Founded in 2016, Armis recently surpassed $300 million in annual recurring revenue, a significant increase achieved less than a year after passing $200 million ARR. This rapid growth has attracted major investors.
Its latest funding round was led by Goldman Sachs Alternatives’ growth equity fund, with participation from CapitalG, Alphabet’s venture capital arm. Earlier investors include Sequoia Capital and Bain Capital Ventures.
ServiceNow and Armis did not respond immediately to requests for comment from CNBC. If completed, this acquisition would strategically expand ServiceNow’s cybersecurity portfolio.
The potential purchase highlights the growing importance of cybersecurity amid increasing digital transformation and connected device adoption. It also reflects ServiceNow’s ambition to bolster its position in enterprise security services.
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