ServiceNow Makes Record Acquisition of Armis in Cybersecurity Expansion
ServiceNow, on December 23, 2025, announced its decision to acquire the cybersecurity startup, Armis, for a whopping $7.75 billion in cash. This marks the largest acquisition to date by the enterprise software company, reflecting the escalating importance of cybersecurity in an era where artificial intelligence is reshaping both cyber threats and defenses.
Armis, an Israeli-founded company with its headquarters in California, has carved a niche for itself in the realm of cyber exposure management and security across various platforms such as enterprise IT, operational technology (OT), cloud, and IoT environments. The company has witnessed impressive growth, with its annual recurring revenue surpassing $340 million and year-over-year growth exceeding 50%. Serving over 35% of the Fortune 100 companies, Armis has gained the trust of government agencies globally.
With this acquisition, ServiceNow expects to triple its market opportunity for security and risk solutions. The deal will see the integration of Armis’s capabilities for device scanning, threat detection, and vulnerability management into ServiceNow’s AI-driven platform. This integration is aimed at creating what the company refers to as an “AI control tower” for enterprise security.
The acquisition of Armis is the latest in a series of purchases by ServiceNow in 2025. The company had previously acquired AI agent platform Moveworks for $2.85 billion and identity security platform Veza. Following the announcement of the Armis acquisition, ServiceNow shares fell by approximately 2%, as investors expressed concerns about the company’s aggressive acquisition strategy.
The deal is slated to close in the second half of 2026, pending regulatory approvals. This acquisition puts an end to Armis’s plans for an initial public offering, which was originally targeted for late 2026 or early 2027.
Source: CNBC