ServiceNow acquiring cybersecurity startup Armis for nearly $8 billion
ServiceNow Will acquire cyber security startup Armis The company said Tuesday it made a cash deal worth $7.75 billion.
Shares fell about 1 percent.
The enterprise software company said the deal will strengthen its cybersecurity capabilities in the age of artificial intelligence and more than triple its security and risk solutions market opportunity.
“This is about making a strategic move to accelerate growth, and we see that opportunity for our customers,” CEO Bill McDermott told CNBC’s “Squawk on the Street” on Tuesday. “In this AI world, you will need to protect these businesses, especially when it comes to agents [because] Every intrusion is a multimillion-dollar problem.”
The deal, financed through a combination of cash and debt, is expected to close in the second half of next year, ServiceNow said.
McDermott said the company is on an acquisition spree in 2025 to accelerate growth.
ServiceNow announced a deal AI agent platform Moveworks It announced that it would buy it for $2.85 billion in March and at the beginning of December identity security platform Veza.
“ServiceNow will have the single AI control tower that drives workflow, action and business outcomes across all these environments,” McDermott added.
Bloomberg first reported earlier this month that Armis was exploring a possible $7 billion deal with ServiceNow.
The California-based company, which helps businesses protect internet-connected devices from cyber risks, announced in November that it had raised $435 million at a valuation of $6.1 billion.
At the time, co-founder Yevgeny Dibrov told CNBC that Armis was considering going public in 2026 or 2027, but its main goal was to surpass $1 billion in annual recurring revenue.
“There is a growing need for what Armis is doing and what we are building in this cyber risk management and security platform,” he said, adding that there is a “very unique and huge” demand for its tools.
Many companies have opted to remain private longer or be acquired as the turbulent IPO market begins to recover. Major companies like Stripe and Databricks have found capital flowing into private markets.
In the age of artificial intelligence, companies are spending more on cybersecurity to protect against increasingly sophisticated threats.
This year has also been significant for major cybersecurity deals as companies look to improve their ability to protect against threats. This includes Google’s $32 billion acquisition of cloud security startup Wiz and Palo Alto Networks’ $25 billion deal for CyberArk.
ServiceNow said Armis has surpassed $340 million in annual recurring revenue, with 50% year-on-year growth. 300 million dollars It was announced in August.
