Published by Global Banking & Finance Review®
Posted on December 23, 2025
2 min readLast updated: January 20, 2026
Add as preferred source on Google
ServiceNow acquires Armis for $7.75 billion to enhance cybersecurity against AI-driven threats, despite a 3% share drop.
By Kritika Lamba and Jaspreet Singh
Dec 23 (Reuters) - ServiceNow on Tuesday agreed to buy cybersecurity startup Armis for $7.75 billion, in the enterprise software maker's biggest-ever deal, as it bolsters its services to help counter rising cyberattacks driven by AI adoption.
Through the deal, the company aims to integrate Alphabet-backed Armis' security features such as device scanning and threat detection, a crucial advantage amid sophisticated cyberattacks that have hit companies ranging from Microsoft to UnitedHealth Group.
However, ServiceNow's shares fell about 3%, as investors worried over the company's recent splurge on acquisitions.
"Our security stack, with the acquisition of Armis, is very well positioned, so we won't need to do any more M&A in security space," ServiceNow Chief Financial Officer Gina Mastantuono told Reuters.
The company expects the deal, scheduled to close in the second half of 2026, to triple the market opportunity for its security and risk business.
"ServiceNow's buying spree shows it's trying to get ahead of competitors on the orchestration and governance front by acquiring IP, tech leadership, and customer bases," said Rebecca Wettemann, CEO of Valoir, an industry research and advisory firm.
In recent months, ServiceNow has bought security firm Veza, AI company Moveworks and sales automation platform Logik.ai, formerly Logik.io. The company closed its $2.85 billion acquisition of Moveworks this month.
Armis, valued at $6.1 billion in a funding round in November, was preparing for an initial public offering.
The startup's latest funding was led by the alternative investment platform of Goldman Sachs. Existing investor CapitalG, Alphabet's VC arm, also participated in the round.
Armis, founded in 2015, unveiled a three-year plan last month to reach $1 billion in annual recurring revenue after crossing the $300 million milestone in August.
(Reporting by Kritika Lamba and Jaspreet Singh in Bengaluru; Editing by Shilpi Majumdar and Sriraj Kalluvila)
Cybersecurity refers to the practice of protecting systems, networks, and programs from digital attacks. These attacks are usually aimed at accessing, changing, or destroying sensitive information.
An acquisition is a corporate action in which one company purchases most or all of another company's shares to gain control. This can help companies expand their market presence and capabilities.
Artificial intelligence (AI) is the simulation of human intelligence processes by machines, especially computer systems. It includes learning, reasoning, and self-correction.
Threat detection is the process of identifying potential security threats to an organization's systems and data. It involves monitoring and analyzing activities to prevent breaches.
Device scanning is a security measure that involves identifying and assessing devices connected to a network to ensure they meet security standards and are not vulnerable to attacks.
Explore more articles in the Finance category
