Prime Highlights:
- ServiceNow is in advanced talks to acquire cybersecurity startup Armis, in a deal that could reach $7 billion.
- The acquisition would be ServiceNow’s largest-ever purchase, strengthening its cybersecurity offerings.
Key Facts:
- Armis recently surpassed $300 million in annual recurring revenue (ARR)and raised $435 million in funding.
- The startup was valued at $6.1 billionin its last funding round and had been planning an IPO for late 2026 or early 2027.
Background:
ServiceNow is in advanced talks to buy cybersecurity startup Armis in a deal that could reach $7 billion, which would be ServiceNow’s biggest acquisition.
Armis, founded in 2016, specializes in securing and managing internet-connected devices, helping businesses protect against cyber threats. The company recently surpassed $300 million in annual recurring revenue (ARR), a milestone reached in less than a year after hitting $200 million in ARR.
The startup was last valued at $6.1 billion during a funding round in November, which raised $435 million led by Goldman Sachs Alternatives growth equity fund, with participation from Alphabet’s venture arm CapitalG. Previous investors include Sequoia Capital and Bain Capital Ventures.
CEO and co-founder Yevgeny Dibrov had earlier indicated that Armis was considering an IPO around the end of 2026 or early 2027, depending on market conditions. The potential acquisition shows that many startups are choosing private exits rather than waiting for public listings amid uncertain IPO markets.
The deal might be announced this week, but talks are still ongoing, and the acquisition is not certain. ServiceNow and Armis have not commented.
If completed, the acquisition would strengthen ServiceNow’s cybersecurity portfolio, giving the software company a strategic edge in helping clients secure connected devices while expanding its market presence.
