After Alphabet and Palo Alto Networks each acquired cybersecurity firms, tech company ServiceNow Inc., is in advanced talks to buy Armis, and Israeli military veterans-run cybersecurity startup for up to $7 billion, Bloomberg reported citing sources. If it goes through, this would be ServiceNow’s largest acquisition to date.
They added that while the talks are late stage and a deal may be announced soon, it could also collapse or another potential bidder may emerge, as per the report.
ServiceNow spokesperson declined to comment, and a representative for Armis could not immediately respond to Bloomberg’s queries on the matter, it added.
About ServiceNow and Armis
ServiceNow provides software for companies to automate and organise their information technology (IT) and personnel operations. As per the report, the Santa Clara, California-based company has become a “dominant” platform for enterprise workflow.
Shares at closing time of Friday (12 December) closed down around 0.3% in New York, giving ServiceNow a market value of close to $179.5 billion.
This is not the first tech upgrade acquisition move from ServiceNow. In March, it agreed to buy AI firm Moveworks Inc. for $2.85 billion. The deal gives the company AI tools that can complete tasks without human supervision.
Armis is based in San Francisco and founded by veterans of the Israeli military cyber intelligence. The company specialises in identifying and tracking security threats on devices and works across industries including defense, financial services and medicine, as per the report.
CEO Yevgeny Dibrov in August said Armis reached $300 million annual recurring revenue in 2025, compared to $200 million a year back. He added that the firm is also considering an initial public offer (IPO) in 2026, the report added.
Prior to this, in 2020, Insight Partners and other investors, including Alphabet’s CapitalG, had agreed to acquire Armis for $1.1 billion. In September, Thoma Bravo, private equity giant was also in talks for a potential deal with Armis, with about six to seven offers from investors for a stake in the company.
Tech companies race to boost cybersecurity portfolio
Notably, IT giants such as Microsoft and Salesforce Inc. are also competing to weave generative artificial intelligence (gen AI) features into their products. There are also aggressive moves to embed cybersecurity into tech products, as seen in deals made by Alphabet and Palo Alto earlier this year, the Bloomberg report noted.
In March, the Google parent signed a deal to acquire cloud security firm Wiz Inc. for $32 billion in cash; while Palo Alto in July said it is purchasing Israeli company CyberArk Software for around $25 billion, the report said.
Source: Mint