ServiceNow in advanced talks to acquire cybersecurity startup Armis for upto $7 billion, says report
According to Bloomberg, citing sources, Alphabet and technology company ServiceNow Inc. Paolo Alto Networks is reportedly in advanced talks to buy Armis and the Israeli veteran-run cybersecurity firm for $7 billion. If it goes through, this would be ServiceNow’s largest acquisition to date.
The report also stated that negotiations are in a late stage and a deal could be announced soon, but the deal could collapse or another potential bidder could emerge.
A ServiceNow spokesperson declined to comment, adding that an Armis representative could not immediately respond to Bloomberg’s questions on the matter.
About ServiceNow and Armis
Shares of ServiceNow closed around 0.3% in trading in New York on Friday, giving the Santa Clara, California-based company a market value of about $179.5 billion.
Founded by veterans of Israeli military cyber intelligence, San Francisco-based Armis specializes in identifying and monitoring security threats on devices, working across a variety of industries including medical, financial services and defense.
Armis CEO Yevgeny Dibrov said in early August that the company’s annual recurring revenue had reached $300 million, up from $200 million a year earlier, and that it still expects to go public in 2026.
ServiceNow, which provides software that helps companies organize and automate their personnel and information technology operations, has become a dominant platform in enterprise workflow.
Company and Salesforce Inc. and Microsoft Corp. Other leading technology platforms such as are competing to add generative AI features to their products. In March, ServiceNow struck a deal to buy AI company Moveworks Inc. for $2.85 billion as part of development of AI tools that can complete tasks without human supervision.
A deal for Armis would enable ServiceNow to follow several peers that have aggressively incorporated cybersecurity products into their offerings. Google parent company Alphabet Inc. agreed in March to buy cloud security company Wiz Inc. for $32 billion in cash. In July, Palo Alto Networks Inc. announced it was acquiring CyberArk Software Ltd., in a deal that valued the Israeli company at about $25 billion.
Insight Partners agreed to acquire Armis in 2020 in a $1.1 billion deal that also included other investors such as Alphabet’s CapitalG.
Private equity giant Thoma Bravo had previously considered a possible deal with Armis, and the startup’s executives said in September that they were considering around six to seven offers from investors to take a stake in the company.
