ServiceNow Eyes Major Cybersecurity Acquisition

ServiceNow is reportedly in a late-stage discussion to acquire a cybersecurity startup known as Armis in a deal worth multi-billion dollars.

ServiceNow is in discussions to purchase Armis, a rapidly expanding cybersecurity company based in Israel and founded by Israeli military veterans, reportedly at a deal worth billions. The company has not made a bigger acquisition previously, so the potential transaction of up to $7 billion dollars described by Bloomberg is the biggest acquisition till then. The talks are at an advanced stage, but sources are afraid that there might still be a change of direction in the cybersecurity deal in case the deal slips or other bidders enter.

In San Francisco, Armis offers cybersecurity features that monitor and detect the vulnerabilities on interconnected gadgets, which cover industries from defense to financial services. Recently, the company has passed the mark of $300 million in its annual recurring revenue and is considering a potential IPO in 2026.

This acquisition will support the ServiceNow efforts to go further than workflow automation and get stronger solutions as more enterprises need to find remedies based on integrated AI and cybersecurity. The company had earlier acquired AI firm Moveworks this year at a rate of $2.85 billion.

The tech sector has witnessed a surge in high-value cybersecurity acquisitions. Alphabet is to purchase cloud-security company Wiz for the price of $32 billion dollars, whereas Palo Alto Networks will acquire CyberArk, worth approximately $25 billion. Advanced cybersecurity powers are still ingrained into platforms by the industry giants such as Microsoft and Salesforce, provoking competition in the market.