ServiceNow Buys Cybersecurity Firm Armis for $7.75B, Shelving IPO Plans

It’s a $7.75 billion exit that sidelines an IPO dream. Enterprise software giant ServiceNow has agreed to acquire cybersecurity startup Armis in an all-cash deal, marking one of the largest security acquisitions of the year and signaling a major consolidation push in the enterprise tech landscape.

A Change of Plans

The deal represents a massive valuation jump for the nine-year-old company. Just last month, Armis raised a $435 million pre-IPO funding round that valued it at $6.1 billion. At the time, co-founder and CEO Yevgeny Dibrov told TechCrunch that an IPO in late 2026 or 2027 was his “personal dream.” However, given the unpredictable nature of public markets and the small number of cybersecurity firms that successfully go public, it’s not surprising that Armis ultimately opted for an M&A exit.

ServiceNow's Aggressive Expansion

According to ServiceNow, Armis has reached $340 million in annual recurring revenue (ARR), with year-over-year growth exceeding 50%. The acquisition will help ServiceNow significantly expand its cybersecurity offerings, as Armis provides security software for critical infrastructure to Fortune 500 companies and governments. The deal caps a busy year for ServiceNow, which also scooped up Moveworks for $2.85 billion and cybersecurity firm Veza for $1 billion in 2025.

Data from PitchBook shows that Armis had raised a total of $1.45 billion in venture capital from prominent investors, including Sequoia, CapitalG, and Insight Partners.