ServiceNow is making a big, expensive bet on cybersecurity. The enterprise software giant said it will acquire Armis, a fast-growing startup focused on cyber exposure management, in a cash deal valued at about $7.75 billion. It is the largest acquisition ServiceNow has ever announced and a clear signal that the company wants to have a much bigger role in how large organizations secure complex, device-heavy digital environments. The deal is expected to be finalized in the second half of 2026, subject to regulatory approval.
Notably, Armis, founded in 2015, has built a strong reputation by focusing on areas of cybersecurity that often slip under the radar of traditional IT security tools. Its platform continuously identifies and classifies every connected device in an organization – from laptops and servers to IoT gadgets, medical devices, and operational technology – highlighting potential vulnerabilities and helping security teams prioritize risks. This capability is increasingly important as enterprises expand their digital footprint with remote work, cloud services, and AI-powered applications, creating environments that are hard to monitor and protect completely.
For ServiceNow, integrating Armisâ technology promises to improve its security offerings significantly. The companyâs platform already provides enterprise workflow automation, IT service management, and risk management solutions, but adding Armisâ real-time device visibility and cyber exposure intelligence allows customers to see, assess, and respond to threats in a more unified and automated way. This integration could help organizations reduce manual effort, improve threat response times, and strengthen overall cybersecurity stability.
Armis has seen rapid growth since its inception, generating hundreds of millions in recurring revenue and serving a broad customer base that includes many Fortune 100 companies. Its solutions are particularly valued in industries where connected devices play a critical role, like healthcare, finance, manufacturing, and critical infrastructure. One more noteworthy thing is that last month, Armis raised $435 million at a $6.1 billion valuation.
The timing of the deal is significant. Enterprises are facing increasingly advanced cyber threats, including ransomware, supply-chain attacks, and vulnerabilities in non-traditional devices. Therefore, by combining Armisâ detection and exposure management with ServiceNowâs workflow and automation capabilities, the company is positioning itself as a provider of a more aggressive, AI-enabled security platform rather than a collection of isolated tools. Meanwhile, financially, the announcement had a mixed reaction in the market. Even ServiceNowâs shares dipped slightly, as investors weighed the size of the cash commitment.
“Security continues to be the number one priority for CEOs as organizations navigate increased adoption of AI. Worldwide end-user spending on information security is projected to increase 12.5% in 2026 to $240 billion, with rising threats and the expanding use of AI and generative AI being the key growth drivers,” ServiceNow noted.
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