ServiceNow has agreed to acquire Israeli cybersecurity startup Armis for $7.75 billion in cash, the companies said on Tuesday, as the enterprise software maker seeks to attract new customers amid growing cyberattack risks.
The company is aiming to integrate Armis' security features, such as device scanning, threat detection, and vulnerability prioritization, to its AI-powered platform, a crucial advantage amid increasingly sophisticated cyberattacks that have hit companies ranging from Microsoft to UnitedHealth Group.
Santa Clara, California-based ServiceNow's shares fell about 2% in premarket trading.
ServiceNow shares slumped nearly 12% on December 15 after Bloomberg News reported about the potential Armis deal over the weekend. The selloff wiped off around $20 billion from the company's market value, a sign that investors scrutinized the hefty spending goals of smaller cloud players.
In recent months, ServiceNow has made significant acquisitions of the security firm Veza, the AI company Moveworks, and the sales automation platform Logik.ai (formerly Logik.io) to expand its customer relationship management footprint and accelerate sales, order management, AI, and security capabilities.
Armis $6.1 billion November value raised
Armis, valued at $6.1 billion in a November funding round, was preparing for an initial public offering.
Goldman Sachs's alternative investment platform led the startup's latest financing. Existing investor CapitalG, Alphabet's arm, also participated in the round.
Armis, founded in 2015, unveiled a three-year plan last month to reach $1 billion in annual recurring revenue after crossing the $300 million milestone in August.
ServiceNow closed its $2.85 billion acquisition of Moveworks this month. It spent $506 million on Logik.ai, while financial details for the Veza buyout were undisclosed.
Its deal with Armis is expected to close in the second half of 2026.