ServiceNow in late-stage talks to buy Armis for up to $7 billion

ServiceNow is in advanced talks to acquire cybersecurity startup Armis in a deal valued at up to $7 billion, a move that would mark the enterprise software firm’s largest acquisition to date, Bloomberg reported.

Citing people familiar with the matter, Bloomberg said the discussions are at a late stage and an announcement could come soon, though the talks could still fall apart or attract a rival bidder.

A spokesperson for ServiceNow declined to comment, while an Armis representative did not immediately respond to Bloomberg’s request for comment.

If completed, the transaction would underscore ServiceNow’s push to deepen its cybersecurity capabilities as large technology companies accelerate dealmaking to defend corporate customers against growing digital threats.

ServiceNow, headquartered in Santa Clara, California, provides software that helps companies automate and manage information technology and workforce operations. Bloomberg described the company as having emerged as a dominant platform in enterprise workflow management.

Shares of ServiceNow closed about 0.3% lower in New York on Friday, valuing the company at roughly $179.5 billion.

The talks follow a series of high-profile acquisitions by ServiceNow. In March, the company agreed to buy artificial intelligence firm Moveworks for $2.85 billion, adding AI tools designed to resolve tasks without human intervention.

Armis, based in San Francisco, was founded by veterans of Israel’s military cyber intelligence units. The company focuses on identifying and monitoring security threats across connected devices and serves sectors including defence, financial services and healthcare.

In August, Armis chief executive Yevgeny Dibrov said the company had reached $300 million in annual recurring revenue in 2025, up from $200 million a year earlier. He also said the firm was considering an initial public offering in 2026.

Armis has attracted significant investor interest in recent years. In 2020, Insight Partners and other backers, including Alphabet’s CapitalG, agreed to acquire the company for $1.1 billion. More recently, private equity firm Thoma Bravo was among investors exploring a potential deal.

The potential acquisition comes as technology companies race to integrate cybersecurity and generative artificial intelligence into core products. Bloomberg noted that Alphabet and Palo Alto Networks have also made aggressive moves this year, reflecting heightened demand for security software amid rising cyber risks.

Whether ServiceNow secures Armis or faces competition for the asset, analysts expect consolidation in cybersecurity to continue as large platforms seek scale, recurring revenue and strategic depth in an increasingly contested market.