ServiceNow to Buy Armis for $7.75 Billion, Accelerate AI Era Security

ServiceNow said today it has agreed to acquire Armis for approximately $7.75 billion in cash, in a transaction the company expects to fund with a combination of cash on hand and debt. The parties said they expect the deal to close in the second half of 2026, subject to customary regulatory approvals and other closing conditions. Upon completion, Armis’ workforce will join ServiceNow and its technologies will be folded into the company’s Security, Risk and operational technology offerings.

ServiceNow characterized Armis as a leader in cyber exposure management and cyber physical security that monitors risk across the full attack surface, including IT systems, operational technology, medical devices and other connected environments for commercial, government and critical infrastructure customers. The acquisition aims to expand ServiceNow’s security workflow capabilities and to bolster trust in enterprise environments as organizations accelerate adoption of artificial intelligence.

The deal materially boosts ServiceNow’s exposure to the cybersecurity market. Company data cited by investors shows ServiceNow had a market capitalization of about $162.54 billion and has sustained year over year revenue growth of roughly 21.05 percent over the last twelve months. ServiceNow’s Security and Risk business cleared the $1 billion annual contract value threshold in the third quarter of 2025, underscoring management’s stated ambition to scale security as a core platform offering.

Armis, a nine year old cybersecurity startup, brings scale and momentum. Public reporting indicates Armis has topped $340 million in annual recurring revenue and maintained around 50 percent year over year growth, up from $300 million disclosed in August 2025. In November 2025 Armis raised a $435 million pre IPO round that valued the company at about $6.1 billion, bringing its total venture funding to roughly $1.45 billion from investors including Sequoia, CapitalG and Insight Partners. Company commentary has said Armis had been preparing for an eventual initial public offering.

For ServiceNow, the acquisition is the latest in a busy M&A year as the company has purchased assets and startups aimed at broadening its AI, automation and security capabilities. Transactions in 2025 included moves to acquire Moveworks, reportedly for about $2.85 billion, and the cybersecurity startup Veza for roughly $1 billion, alongside smaller purchases of AI and sales automation technologies. Together these deals reflect a strategy to knit security, automation and AI into a unified enterprise workflow platform.

Market implications are significant. The Armis purchase is expected to materially increase ServiceNow’s addressable market in security and risk solutions, and to accelerate the industry trend of bundling cybersecurity into core enterprise software. The deal also reinforces consolidation pressure across the cybersecurity sector as vendors compete to secure AI deployments and to manage risk across increasingly interconnected environments.

The transaction’s financing with debt could affect ServiceNow’s leverage and credit metrics, and regulatory review is likely given the acquisition touches critical infrastructure and medical device security. Still, if completed as planned, the purchase positions ServiceNow to sell a tighter integration of security into day to day operations at a moment when businesses and governments are prioritizing resilience in the face of more complex cyber threats.