ServiceNow in Advanced Talks to Acquire Armis in Deal Valued Up to $7 Billion

Key Takeaways

  • ServiceNow is in advanced discussions to acquire cybersecurity firm Armis in a deal reported to reach as high as $7 billion.
  • Armis, valued at $4.2 billion in a recent fundraising round, had been preparing for a potential IPO in 2026.
  • The talks remain fluid, with the possibility of the deal falling apart or another bidder emerging, according to Bloomberg News.

ServiceNow is closing in on what could become one of its largest acquisitions to date: the purchase of Armis, a U.S.-Israeli cybersecurity startup focused on securing connected devices in real time. Bloomberg News reported the companies are in advanced talks on a deal that may be valued at up to $7 billion, citing people familiar with the negotiations. It’s a notable figure, not only because of the sheer size but because Armis was widely expected to pursue an IPO in the year ahead—a reminder of how fluid the line between public-market ambitions and strategic buyouts has become.

The report noted that the two sides may reach an agreement within days. Still, the usual caveats apply. Negotiations at this stage often stretch, pivot, or evaporate entirely, and sources close to the matter stressed that another potential bidder could still appear. It’s a small detail, but it hints at the level of interest surrounding high-growth cybersecurity firms, especially those tied to operational technology (OT) and device-level visibility.

What’s pushing ServiceNow toward a deal of this size? The underlying logic isn’t hard to trace. Armis has carved out a strong position in asset intelligence and threat detection for connected devices—data center equipment, industrial systems, medical devices, and the myriad endpoints that traditional security tools often miss. A significant portion of the Fortune 100 currently uses Armis. That kind of enterprise penetration tends to command a premium.

Founded in 2016, Armis has seen rapid valuation growth. While the startup raised capital in late 2024 at a $4.2 billion valuation, the potential $7 billion price tag for this acquisition suggests ServiceNow sees substantial strategic value in locking down the asset. The funding history signals escalating investor demand for technologies that can map and secure distributed device environments. The source reporting notes that global cyberattacks have inflicted billions in losses recently, pushing lawmakers to make cyber-resilience a board-level priority. The demand surge mentioned sits squarely within that context.

For ServiceNow, an acquisition like this would fold into a strategy of expanding from workflow automation into adjacent operational domains. There has been a steady drumbeat of deals over the past few years as ServiceNow has looked to strengthen its security, observability, and automation stack. Even so, nothing the company has bought recently comes close to the reported Armis valuation. This raises a natural question: how would this reshape the company’s approach to security operations? While the specifics of the integration aren't yet public, the operational-device visibility that Armis delivers would likely complement ServiceNow’s existing incident response and asset management modules.

There is a shift in perspective worth noting here. Device-level security used to be a niche concern—important, yes, but not a top-tier boardroom topic. The explosion of connected sensors, industrial IoT deployments, and hospital equipment that is permanently online has changed that calculation. The attacks hitting manufacturing, healthcare, and logistics sectors highlight how physical operations can be derailed by gaps IT teams never fully owned. When reports point out the global losses tied to these incidents, they are drawing a straight line to the expanding footprint of devices that sit outside traditional IT governance.

ServiceNow’s interest in that environment isn’t surprising. The company’s product suites increasingly aim to serve as the connective tissue across IT and operations. If the Armis deal lands, it could give ServiceNow a stronger story around real-time device intelligence, though Bloomberg’s reporting makes clear the negotiations still have uncertainty baked in. Deals of this scale often attract rival bidders, and Armis’ customer base could make the company appealing to more than one potential acquirer.

For B2B leaders, the most immediate relevance sits in two places. First, the market is signaling continued appetite for cybersecurity investments tied to operational resilience. Regulatory pressure tends to drive budget shifts, and cyber-resilience is moving up the corporate agenda. Second, enterprises relying heavily on connected devices—manufacturers, energy companies, hospitals, transportation firms—are watching how major platforms incorporate device intelligence. Consolidation can simplify procurement, but it also changes roadmaps. Teams already navigating integration debt may look at a prospective deal and wonder how quickly capabilities could be unified. It is a reasonable question for practitioners reading the news.

Two notes add context to the numbers. Bloomberg’s report aligns with previous coverage regarding ServiceNow’s aggressive acquisition strategy. Furthermore, Armis’ recent funding rounds have been widely covered by outlets like TechCrunch, confirming the company's rapid ascent in valuation. These consistent data points help cut through the fog that sometimes surrounds late-stage private market rumors.

If the deal does move forward, it would underscore a trend that has been building quietly: large enterprise software vendors are positioning themselves not just around apps and workflows, but around the physical and operational layers of business technology. While Reuters and Bloomberg stick tightly to the deal mechanics, the outlines of this broader shift are visible.

For the moment, the outcome hinges on negotiations. As sources emphasized, the situation could change quickly. ServiceNow and Armis are keeping their distance publicly, at least until there is something final to say.