ServiceNow is in talks to acquire cybersecurity startup Armis. It could pay up to $7 billion for the startup, making it the largest deal in ServiceNow’s history. The talks are reportedly at an advanced stage, according to a Bloomberg News report citing sources familiar with the matter.
The acquisition could be officially announced soon. However, the deal is not yet final; the talks could still break down, or another potential bidder may emerge. A ServiceNow spokesperson declined to comment on Bloomberg’s report.
Armis was founded by former Israeli Defense Forces cyber intelligence veterans and is based in San Francisco.
The company focuses on detecting and tracking security threats on devices. The startup works in various sectors, including healthcare, financial services, and defense.
In early August, Armis CEO Yevgeny Dibrov announced that the company had achieved $300 million in annual recurring revenue, up from $200 million a year back.
ServiceNow offers software that helps companies automate and organize their workforce and IT processes. The company, with a market capitalization of approximately $179.5 billion, has evolved into a platform for enterprise workflows.
Like Salesforce and Microsoft, ServiceNow integrates generative AI capabilities into its products. In March, the company acquired AI company Moveworks for $2.85 billion as part of its strategy to develop AI tools that can perform tasks without human supervision.
Armis was acquired by Insight Partners in 2020 in a $1.1 billion deal, which also included investment from Alphabet’s CapitalG. In September, private equity giant Thoma Bravo previously expressed interest in the company, with about six to seven offers from investors for a stake in the company.
