ServiceNow, the enterprise software provider with a market capitalization approaching $180 billion, is in advanced negotiations to acquire Armis, a privately held cybersecurity company specializing in exposure management and device security.
The potential acquisition, valued at up to $7 billion, would represent the largest deal in ServiceNow's history and signals an aggressive expansion into the cybersecurity market.
According to Bloomberg News sources familiar with the matter, an announcement regarding the transaction could occur within days, though the talks remain fluid and could still collapse or attract competing bidders.
Both ServiceNow and Armis declined to comment on the negotiations when contacted by media outlets.
Founded in 2016 by Israeli technology entrepreneurs Yevgeny Dibrov and Nadir Izrael—both graduates of Israel's Institute of Technology with backgrounds in Israeli Defense Force software units—Armis has emerged as a significant player in the cybersecurity landscape.
The company's Centrix platform provides real-time visibility, risk assessment, and protection for organizations' entire digital attack surfaces, with particular strength in securing connected devices across traditional IT, operational technology (OT), Internet of Things (IoT), and medical device environments.
Armis boasts an impressive client roster that includes over 40 percent of Fortune 100 companies.
Among its customers are global brands such as Colgate-Palmolive, United Airlines, Allegro MicroSystems, Takeda Pharmaceuticals, and Mondelēz International, alongside public sector institutions including Las Vegas city government and the National Health Service in Wales.
The company achieved a significant financial milestone in August 2025 when CEO Dibrov announced that Armis had reached $300 million in annual recurring revenue (ARR), up substantially from $200 million the previous year.
This trajectory of rapid growth, coupled with plans for an initial public offering in late 2026 or early 2027, made the company an attractive target for acquisition before entering the public markets.
In November 2025, Armis closed a substantial funding round that raised $435 million and valued the company at $6.1 billion. The round was led by the Growth Equity division of Goldman Sachs Alternatives and included participation from Alphabet's venture capital arm CapitalG, with Evolution Equity joining as a new investor.
Armis stated that capital from this funding round would support a three-year strategic plan focused on increasing revenues, pursuing strategic acquisitions, and advancing toward its public offering.
The acquisition proposal arrives at a moment when ServiceNow is aggressively pursuing growth in the cybersecurity sector. In early December 2025, the company announced its intent to acquire Veza, an identity security startup, for over $1 billion.
Veza specializes in identity governance through its proprietary Access Graph platform, which maps and analyzes access relationships across human, machine, and artificial intelligence identities—a capability increasingly critical as organizations deploy autonomous AI agents throughout their operations.
Earlier in 2025, ServiceNow completed its $2.85 billion acquisition of Moveworks, an artificial intelligence company focused on enterprise search and autonomous task completion.
These three acquisitions demonstrate a coordinated strategy to position ServiceNow as a comprehensive platform integrating artificial intelligence, identity security, and threat exposure management into its enterprise software ecosystem.
CEO Bill McDermott has emphasized that artificial intelligence represents not a threat to business software but rather an opportunity for closer collaboration between AI models and integrated business solutions.
The Armis acquisition would substantially advance this vision, providing ServiceNow with direct capability in continuous device monitoring and cyber risk quantification across modern organizations' increasingly complex digital environments.
Armis has demonstrated strategic acquisitions of its own over the past two years, including the purchase of Israeli cybersecurity startup Silk Security, as it expanded its exposure management platform to address threats across cloud infrastructure, AI systems, and operational technology networks.
The company operates offices in the United States, Israel, Australia, and the United Kingdom, reflecting its global market presence.
The broader market context underscores the strategic importance of this acquisition. The cybersecurity industry has witnessed significant consolidation in recent years, with major players making substantial investments to consolidate fragmented security capabilities. The Armis transaction reflects the high valuations commanded by specialized cybersecurity companies with proven revenue models and broad enterprise customer bases.
ServiceNow's acquisition of Armis would integrate exposure management—the ability to continuously identify, assess, and remediate security risks across an organization's entire digital attack surface—into its AI Control Tower platform, which orchestrates automated workflows across enterprise systems.
Industry analysts have noted that the convergence of traditional IT security, operational technology protection, and AI governance creates both challenges and opportunities.
As organizations increasingly leverage autonomous AI agents and deploy critical systems across hybrid cloud and on-premises environments, the visibility and control capabilities that Armis provides become more valuable. The integration with ServiceNow's existing security operations products could enable unified risk assessment and response across previously siloed domains.
The pending transaction faces a timeline shaped by regulatory considerations, as U.S. authorities have intensified scrutiny of technology acquisitions involving artificial intelligence and emerging security technologies.
Neither company has disclosed expected closing conditions or regulatory approval timelines, though the announcement of a definitive agreement could resolve some market uncertainty regarding the deal's probability.
For Armis investors, a successful transaction would represent a substantial return on capital. Insight Partners, which acquired a majority stake in 2020, would be the primary beneficiary of the acquisition, according to reports.
The firm's 2020 investment marked what was then the largest exit for a private Israeli cybersecurity company.
Armis and ServiceNow remain in negotiations that could conclude swiftly or potentially dissolve entirely. The speed with which both companies move forward would depend on satisfactory completion of commercial, financial, and legal assessments.
What remains clear is that ServiceNow's pursuit of Armis, combined with its recent acquisitions of Veza and Moveworks, reflects a deliberate effort to establish itself as the primary platform for governing enterprise risk in an era defined by distributed computing, autonomous artificial intelligence, and sophisticated cyber threats.
