ServiceNow to acquire cybersecurity startup Armis for $7.75B

ServiceNow, a leading enterprise software provider, has announced its intention to acquire the cybersecurity startup Armis for an impressive $7.75 billion in cash. This acquisition marks a significant increase in valuation for Armis, which only recently secured a $435 million pre-IPO funding round, valuing the company at $6.1 billion. Yevgeny Dibrov, co-founder and CEO of Armis, previously shared with TechCrunch that the company was aiming for an initial public offering (IPO) by late 2026 or 2027, describing it as his "personal dream." However, with the volatility of IPO markets and the limited number of cybersecurity firms successfully going public, Armis's decision to pursue a merger and acquisition (M&A) strategy has become clearer. According to ServiceNow, Armis has achieved an annual recurring revenue (ARR) of $340 million, with an impressive year-over-year growth rate of over 50%. The startup specializes in providing security solutions for critical infrastructure, serving Fortune 500 companies and government entities alike. This acquisition will enable ServiceNow to significantly enhance its cybersecurity capabilities. This move is part of a busy year for ServiceNow, which has also acquired Moveworks for $2.85 billion and made arrangements to purchase Veza, another cybersecurity startup, for $1 billion. Overall, Armis has successfully raised $1.45 billion in venture capital from notable investors, including Sequoia, CapitalG, and Insight Partners.