Prime Highlights:
- ServiceNow will acquire cybersecurity startup Armis in a $7.75 billion deal to strengthen business protection.
- The acquisition positions ServiceNow to expand its cybersecurity offerings and meet growing demand for security solutions.
Key Facts:
- Armis generates $340 million in annual revenue with 50% year-over-year growth.
- The deal is expected to close in the second half of next year and will be financed with a mix of cash and debt.
Background:
Enterprise software leader ServiceNow has announced plans to acquire cybersecurity startup Armis in a $7.75 billion deal. The acquisition is expected to strengthen its ability to protect businesses. The transaction, set to close in the second half of next year, will be financed with a mix of cash and debt.
ServiceNow CEO Bill McDermott said that the acquisition represents a strategic step to accelerate growth and provide enhanced protection for enterprise clients. McDermott said companies need strong protection because each security breach can cost millions. He said the company will have a system to oversee work and business activities in all areas.
Armis, a California-based cybersecurity firm, specializes in securing internet-connected devices and managing cyber exposure. The company recently raised $435 million at a $6.1 billion valuation and had been planning an initial public offering in the coming years.
The acquisition is part of ServiceNow’s broader strategy in 2025, following its purchase of Moveworks for $2.85 billion in March and the identity security platform Veza in December. Analysts say the deal shows a growing trend, with more companies investing in cybersecurity to guard against increasing threats.
The acquisition also puts ServiceNow alongside other major tech companies like Google and Palo Alto Networks, which have made large cybersecurity purchases this year. The deal shows strong confidence in cybersecurity solutions and rising demand for digital protection.
