San Francisco, December 14, 2025 : Enterprise software giant ServiceNow Inc. is in advanced negotiations to acquire Armis, a fast-growing cybersecurity company specializing in asset intelligence and device security, in a deal that could be worth up to $7 billion, according to sources familiar with the matter. If completed, it would mark ServiceNow’s largest acquisition to date and significantly strengthen its position in the rapidly expanding cybersecurity market.
Armis, founded in 2015 and headquartered in San Francisco with strong Israeli roots, offers an agentless cybersecurity platform that enables organizations to discover, monitor, and protect connected devices across IT, IoT, OT, and IoMT environments in real time. The company, led by CEO Yevgeny Dibrov, has seen rapid growth, reporting $300 million in annual recurring revenue earlier this year, up from $200 million previously.
The startup counts more than 40% of Fortune 100 companies among its clients, serving critical sectors such as healthcare, manufacturing, finance, defense, and logistics. Armis had been preparing for a potential IPO in late 2026 or early 2027, following a $435 million funding round in November 2025 that valued the company at $6.1 billion. Prior to that, it rejected multiple acquisition offers, including a reported $5 billion bid from private equity firm Thoma Bravo.
For ServiceNow, led by CEO Bill McDermott, the acquisition would align with its aggressive expansion into AI-driven security, risk management, and enterprise resilience. Integrating Armis’ device-centric security capabilities could significantly enhance ServiceNow’s offerings in vulnerability response, incident management, and exposure assessment, particularly as organizations grapple with unmanaged devices and AI-powered cyber threats.
The move follows ServiceNow’s recent high-profile acquisitions, including the $2.85 billion purchase of AI startup Moveworks in March 2025 and the acquisition of identity security firm Veza earlier this month. Industry analysts see the potential Armis deal as part of a broader consolidation trend in cybersecurity, driven by escalating global cyberattacks and rising demand for unified security platforms.
Neither ServiceNow nor Armis has officially commented on the negotiations, and sources caution that the talks remain private and could still fall through or attract rival bidders. If finalized, however, the deal would position ServiceNow to better compete with cybersecurity heavyweights such as Palo Alto Networks and CrowdStrike, offering enterprises a more comprehensive approach to securing their digital attack surfaces.
