ServiceNow reportedly in talks to buy cybersecurity startup Armis in potential $7 billion deal

ServiceNow, a prominent software company, is reportedly deep in negotiations to acquire Armis, a cybersecurity startup valued at $6.1 billion. According to Bloomberg, this potential deal could see ServiceNow's investment soar to $7 billion, marking its largest acquisition to date. Sources familiar with the discussions, who wished to remain anonymous due to the confidential nature of the talks, indicated that an announcement could be imminent, possibly within the week. However, they also cautioned that the negotiations might not reach a conclusion. Armis specializes in securing and managing internet-connected devices, safeguarding them from various cyber threats. Just last month, the startup raised $435 million in a funding round and disclosed aspirations for an initial public offering (IPO) in late 2026 or early 2027, depending on market conditions, as stated by CEO and co-founder Yevgeny Dibrov. The trend of startups opting for acquisitions over public listings is becoming more common, particularly given the current volatility in IPO markets. Founded in 2016, Armis recently announced it surpassed $300 million in annual recurring revenue, achieving this milestone in less than a year after crossing the $200 million mark. The latest funding round was led by Goldman Sachs Alternatives’ growth equity fund, with notable participation from CapitalG, the venture arm of Alphabet. Previous investors include Sequoia Capital and Bain Capital Ventures, underscoring the strong backing Armis has received in its growth journey.