ServiceNow Inc. is in advanced talks to acquire cybersecurity startup Armis in a deal that could reach $7 billion, its largest ever, according to reports.
Bloomberg News first reported the discussions over the weekend, noting that an announcement could come within days. However, sources cautioned that the deal could still collapse or attract competing bidders. Neither company has publicly commented on the reports.
Founded in 2015 by Israeli intelligence veterans, Armis specializes in exposure management and real-time security for connected devices. The company’s Centrix platform provides visibility and risk management across traditional IT equipment, IoT devices, and operational technology systems. Its agentless approach monitors an organization’s entire digital attack surface without requiring software installation on endpoints.
The potential Armis deal follows ServiceNow’s aggressive acquisition strategy this year. Two weeks ago, the company announced plans to acquire identity security firm Veza for reportedly more than $1 billion, pending regulatory approval. Earlier in 2025, ServiceNow completed a $2.85 billion purchase of Moveworks, an AI-powered enterprise search and assistant technology company.
ServiceNow CEO Bill McDermott has emphasized that ServiceNow’s AI investments complement rather than threaten traditional business software, focusing on close integration between AI models and existing enterprise systems. The Armis acquisition would strengthen ServiceNow’s Security and Risk portfolios while expanding its capabilities in cloud computing, artificial intelligence (AI), and operational technology security — areas Armis has bolstered through its own strategic acquisitions over the past two years.
Armis boasts a prestigious client roster spanning healthcare, manufacturing, government, and critical infrastructure sectors. Its customers include NASDAQ, United Airlines, Mondelez International, and the Port of Antwerp-Bruges. More than 40% of Fortune 100 companies reportedly use Armis services, including seven of the top 10.
Additionally, Armis inked a partnership with KODE Labs and IntelliBuild to provide integrated solutions that combine cybersecurity with operational intelligence for building lifecycle management systems.
Its roster of customers and partners have helped Armis ramp up sales growth, with annual recurring revenue (ARR) of $300 million, up from $200 million the previous year. The company is targeting $1 billion in ARR as it prepares for a planned 2026 initial public offering (IPO).
Last month, Armis raised $435 million in pre-IPO funding led by Growth Equity at Goldman Sachs Alternatives, with participation from CapitalG and new investor Evolution Equity Partners. That round valued the company at $6.1 billion. Overall, Armis has raised $1.17 billion across seven funding rounds since 2017, with Insight Partners taking a majority stake in 2020.
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