ServiceNow has agreed to acquire cybersecurity startup Armis for $7.75 billion in cash, marking one of the largest deals in the enterprise software and cybersecurity space. The acquisition reflects ServiceNow’s strategy to attract new customers and expand its footprint in security workflows at a time when cyberattacks are growing in scale and sophistication across industries.
The deal brings Santa Clara-based Armis, a specialist in cyber exposure management and cyber-physical security, into ServiceNow’s AI-powered platform. Armis provides real-time asset discovery, device scanning, threat detection, and vulnerability prioritization across IT systems, operational technology, medical devices, and connected infrastructure. These capabilities will be integrated into ServiceNow’s AI Control Tower to deliver end-to-end visibility and automated response across the entire technology environment.
Strengthening security amid rising cyber risks
ServiceNow aims to enhance its security, risk, and operational technology offerings by combining Armis’ real-time asset intelligence with its own workflow automation and AI capabilities. The integration is expected to help organizations detect vulnerabilities faster, prioritize risks more accurately, and automate remediation across complex and hybrid environments.
Cybersecurity has become a top priority for enterprises as AI adoption expands the attack surface. Global spending on information security is projected to reach $240 billion in 2026, an increase of 12.5 percent year over year, driven by rising threats and the rapid use of AI and generative AI. By acquiring Armis, ServiceNow plans to position itself as a central platform for proactive, AI-native cybersecurity and vulnerability response.
ServiceNow’s Security and Risk business crossed $1 billion in annual contract value in the third quarter of 2025, underscoring its growing role in enterprise security. The Armis deal is expected to more than triple ServiceNow’s market opportunity in security and risk solutions and accelerate its roadmap toward autonomous and proactive cybersecurity.
Market reaction and acquisition strategy
ServiceNow shares fell about 2 percent in premarket trading following the announcement. The stock had already declined nearly 12 percent earlier in December after reports of a potential Armis deal surfaced, wiping out around $20 billion in market value. The reaction highlighted investor concerns over the company’s recent spending spree as it pursues growth through acquisitions.
In recent months, ServiceNow has completed several strategic buys to expand its capabilities. These include the $2.85 billion acquisition of AI company Moveworks, a $506 million deal for sales automation platform Logik.ai, and the purchase of security firm Veza, for which financial details were not disclosed. Together, these deals support ServiceNow’s push into customer relationship management, AI, security, and enterprise workflow automation.
Armis growth and positioning
Founded in 2015, Armis was valued at $6.1 billion in a funding round in November and had been preparing for an initial public offering. The round was led by Goldman Sachs’ alternative investment platform, with participation from existing investor CapitalG, Alphabet’s venture capital arm. Armis has outlined a three-year plan to reach $1 billion in annual recurring revenue after surpassing $300 million in August and later exceeding $340 million, with year-over-year growth above 50 percent.
Armis manages cyber risk across the full attack surface for enterprises, governments, and critical infrastructure worldwide. Its platform is widely used by Global 2000 companies, including more than 35 percent of the Fortune 100 and several Fortune 10 organizations, as well as public-sector and government agencies. The company has also been recognized as a leader in the 2025 Gartner Magic Quadrant for cyber-physical systems protection platforms.
Creating an end-to-end security platform
As longtime partners, ServiceNow and Armis already offer integrations that connect Armis’ asset intelligence with ServiceNow workflows. Under the acquisition, this collaboration will deepen, enabling continuous discovery of managed and unmanaged assets, including IoT, OT, and medical devices that are often missed by traditional tools.
By linking Armis’ real-time exposure insights with ServiceNow’s configuration management database and AI-driven workflows, security teams will be able to see what is connected, understand risk in business context, and act faster to reduce exposure. The combined platform is designed to move organizations from reactive security approaches to continuous, automated risk reduction.
The acquisition of Armis is expected to close in the second half of 2026, subject to regulatory approvals. Once completed, the deal will significantly expand ServiceNow’s role as an AI control tower for enterprise security, governance, and digital transformation.
RAJANI BABURAJAN
