Enterprise software company ServiceNow has agreed to acquire cybersecurity startup Armis for $7.75 billion in cash, bringing a planned public listing for the nine-year-old company to an end.
Valuation And Timing Of The Deal
The acquisition represents a sharp increase in Armis’s valuation. In a pre-IPO funding round completed last month, the company raised $435 million at a valuation of $6.1 billion. At the time, Armis co-founder and chief executive Yevgeny Dibrov said the company was targeting an initial public offering in late 2026 or 2027, describing an IPO as a personal goal.
The decision to pursue an acquisition comes amid uncertainty in public markets and a limited number of cybersecurity companies successfully completing IPOs.
Revenue And Business Focus
According to ServiceNow, Armis has reached $340 million in annual recurring revenue, with year-over-year growth exceeding 50%. The company provides security software designed to protect critical infrastructure, serving Fortune 500 companies as well as government customers.
ServiceNow said the acquisition will support the expansion of its cybersecurity portfolio by adding Armis’s capabilities to its existing enterprise offerings.
ServiceNow’s Acquisition Activity
The Armis transaction follows a series of recent acquisitions by ServiceNow. Earlier this year, the company acquired Moveworks for $2.85 billion and agreed to acquire cybersecurity startup Veza for $1 billion.
Investor Background
According to PitchBook, Armis has raised a total of $1.45 billion in venture capital funding. Investors include Sequoia, CapitalG, and Insight Partners.
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