ServiceNow extends CEO Bill McDermott’s contract to 2030, agrees to buy Armis for $7.75bn

ServiceNow has extended the contract of its chairman and chief executive Bill McDermott through the end of 2030, while simultaneously striking a $7.75 billion cash deal to acquire cybersecurity firm Armis, signalling a decisive push to lock in leadership continuity as it scales its security and AI ambitions.

The software company said McDermott’s amended employment agreement will take effect from January 1, 2026, ensuring his continued service for at least five more years, according to regulatory disclosures cited by Reuters. During this period, McDermott may serve as CEO, co-CEO, executive chairman or non-executive chairman, depending on board decisions.

Separately, ServiceNow confirmed it has agreed to acquire Armis, a fast-growing cyber exposure management company, in one of its largest acquisitions to date. The deal, first reported by the Wall Street Journal, will be funded through a mix of cash on hand and debt and is expected to close in the second half of 2026, subject to regulatory approvals.

McDermott, who joined ServiceNow in 2019 after leading SAP, has overseen a sharp expansion of the company’s cloud platform and a growing focus on artificial intelligence-led workflow automation. The contract extension is seen as a move to provide strategic stability as ServiceNow enters a more aggressive phase of inorganic growth.

Under the revised agreement, McDermott’s compensation as CEO or co-CEO will continue to be benchmarked against performance relative to peers. If he transitions to an executive chairman role, his pay will reflect the scope of that position. The company has also updated its executive severance policy, outlining enhanced protections in the event of a qualifying termination, particularly following a change in control.

The acquisition of Armis significantly deepens ServiceNow’s presence in cybersecurity. Armis specialises in managing cyber risk across IT systems, operational technology, medical devices and other connected assets, areas that have become increasingly exposed as companies accelerate AI adoption.

ServiceNow said the deal would strengthen its security, risk and operational technology offerings by combining Armis’ real-time asset discovery and threat intelligence with ServiceNow’s workflow automation platform. According to Reuters, ServiceNow’s security and risk business crossed $1 billion in annual contract value in 2025, underscoring the strategic importance of the segment.

Armis, founded in 2015, has grown rapidly, surpassing $340 million in annual recurring revenue, with more than half of that growth coming year-on-year, the Wall Street Journal reported. The company serves large enterprises, governments and critical infrastructure operators, and employs roughly 950 people globally.

Industry analysts see the dual announcements as closely linked. Extending McDermott’s tenure provides continuity at the top as ServiceNow integrates a major acquisition and expands into cyber-physical security, an area attracting heightened board-level attention amid rising AI-driven threats.

With regulatory scrutiny around large technology deals intensifying and competition in enterprise software growing sharper, ServiceNow’s leadership bet suggests it is preparing for a longer-term transformation—one that relies as much on executive stability as on scale and capability expansion.