ServiceNow to Acquire Cybersecurity Firm Armis for $7.75 Billion in AI Security Push
ServiceNow announces a $7.75 billion cash deal to acquire cybersecurity startup Armis, aiming to build an AI-powered security platform and capitalize on the growing need to protect enterprises from sophisticated AI threats.
Enterprise software giant ServiceNow announced on Tuesday it will acquire cybersecurity startup Armis in a cash deal valued at $7.75 billion. The company stated the move is designed to significantly bolster its cybersecurity capabilities for the AI era, with the deal expected to close in the second half of next year.
The acquisition will be financed through a combination of cash and debt. ServiceNow claims the integration of Armis, which specializes in protecting internet-connected devices, will more than triple its market opportunity in security and risk solutions.
Building an 'AI Control Tower' for Security
ServiceNow CEO Bill McDermott described the deal as a strategic move to accelerate growth in a world increasingly reliant on AI.
In this AI world, especially with the agents, you're going to need to protect these enterprises [because] every intrusion is a multimillion-dollar problem.
— Bill McDermott, ServiceNow CEO, speaking to CNBC
This acquisition is the latest in ServiceNow's 2025 shopping spree. The company acquired AI agent platform Moveworks for $2.85 billion in March and identity security platform Veza earlier in December. McDermott added that with these acquisitions, "ServiceNow will have the only AI control tower that drives workflow, action and business outcomes across all of these environments."
Armis's IPO Plans on Hold
The deal marks a significant pivot for Armis, which just last month raised $435 million at a $6.1 billion valuation. At the time, co-founder Yevgeny Dibrov told CNBC the company was considering an IPO in 2026 or 2027. The company has demonstrated strong growth, with annual recurring revenue (ARR) topping $340 million with 50% year-over-year growth.
Consolidation in the Cybersecurity Market
The ServiceNow-Armis deal reflects a broader trend of market consolidation driven by the rise of sophisticated AI-powered threats and a turbulent IPO market. 2025 has seen other blockbuster cybersecurity deals, including Google's $32 billion acquisition of Wiz and Palo Alto Networks' $25 billion deal for CyberArk. Many high-growth startups are opting for acquisition over a public listing as large platform companies seek to enhance their threat protection capabilities.
This isn't just an acquisition; it's a declaration in the AI security arms race. Large enterprise platforms like ServiceNow are no longer just integrating with security tools—they're absorbing them to build a single, unified 'control plane' for the entire enterprise. By owning the workflow, device intelligence, and AI-driven response, they aim to become the indispensable nervous system for corporate security, pushing smaller, point-solution vendors into an increasingly difficult position.
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