Enterprise software firm ServiceNow has entered advanced negotiations to acquire cybersecurity company Armis for up to $7 billion, marking what could become the company’s largest acquisition in history.
The deal could be announced within days, according to Bloomberg, potentially reshaping the cybersecurity landscape at a time when enterprises are scrambling to defend against unprecedented threats.
This acquisition would dwarf ServiceNow’s previous record of $2.85 billion for Moveworks, signaling an aggressive push into the booming cybersecurity market that has seen explosive growth throughout 2025.
A $7 billion prize
Armis, founded by Israeli military cyber intelligence veterans in 2016, has emerged as a powerful force in device security management across healthcare, defense, and financial sectors. Earlier this year, the company achieved remarkable growth, jumping from $200 million to $300 million in annual recurring revenue in just one year—a 50% surge that caught industry attention.
Last month, Armis secured $435 million in funding at a $6.1 billion valuation while actively preparing for a 2026 IPO, making ServiceNow’s $7 billion offer a strategic interception of public market plans. What makes this company irresistible? Armis counts more than 40% of Fortune 100 companies among its customers, providing real-time protection for connected devices and operational technology environments that traditional security tools often miss. The company projects reaching $500 million in revenue within 18 months, positioning this as a bet on explosive future growth rather than current metrics alone.
Consolidation frenzy
This potential mega-deal reflects a broader transformation sweeping the cybersecurity industry as AI-powered threats multiply. Companies worldwide have faced an unprecedented surge in high-profile cyberattacks throughout 2025, driving desperate demand for comprehensive security solutions. Between May and August 2024, the adoption of AI-powered cybersecurity systems among chief operating officers skyrocketed from 17% to 55%, demonstrating the urgent need for automated threat detection.
Major tech giants are racing to secure cybersecurity capabilities, with Google’s $32 billion purchase of cloud security firm Wiz representing one of the biggest deals in this space. ServiceNow’s aggressive acquisition strategy, including its purchase of security startup Veza two weeks ago, positions the company to capitalize on this massive market shift.
Workflow automation meets cybersecurity warfare
The Armis acquisition would transform ServiceNow from a workflow automation company into a comprehensive cybersecurity powerhouse, directly competing with industry giants across multiple security categories. Armis’ platform specializes in securing connected devices and operational technology environments in real time, protecting enterprises against threats targeting unmanaged and Internet-connected assets that traditional security tools struggle to monitor.
Picture a fundamental shift in how enterprises approach security architecture. Rather than cobbling together multiple separate solutions, organizations could access integrated protection spanning from workflow automation to real-time device monitoring under one platform. For industries like healthcare, defense, and financial services—where Armis works extensively—this consolidation could streamline security operations while reducing complexity.
But enormous challenges loom ahead. Despite the AI automation surge, 77% of security leaders still require human oversight for AI-powered cybersecurity tools, suggesting integration hurdles await. The massive $7 billion price tag—more than double ServiceNow’s previous largest acquisition—creates enormous pressure to deliver immediate results while merging two complex technology platforms.
With negotiations still fluid and details not yet finalized, the coming days will determine whether this massive investment reshapes enterprise security or becomes a cautionary tale of overambitious expansion in the rapidly evolving cybersecurity arms race.
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