TL;DR
ServiceNow has agreed to buy nine-year-old cybersecurity firm Armis for $7.75 billion in cash. Armis, which reported $340 million in ARR and rapid growth, had recently raised a large pre-IPO round and counted investors such as Sequoia, CapitalG and Insight Partners.
What happened
ServiceNow announced a cash purchase of Armis for $7.75 billion, marking a sizable exit for the nine-year-old security company. Armis had just completed a $435 million pre-IPO financing that valued the business at $6.1 billion, and the acquisition represents a notable valuation increase over that round. ServiceNow characterized Armis as an asset that will broaden its cybersecurity offerings; Armis provides device and infrastructure security for major corporations and government customers. The startup reported roughly $340 million in annual recurring revenue and year-over-year growth above 50%. Armis had raised about $1.45 billion from venture investors over its lifespan, with backers including Sequoia, CapitalG and Insight Partners. The deal follows a busy dealmaking period for ServiceNow, which earlier this year reached agreements to acquire Moveworks and the security company Veza.
Why it matters
- Adds device and critical-infrastructure security to ServiceNow’s product set, expanding its enterprise security footprint.
- Represents a large liquidity event for Armis investors after substantial venture funding and a recent pre-IPO round.
- Underscores continued consolidation in enterprise software and security as major vendors buy specialists rather than wait for IPO exits.
- Highlights the uneven IPO environment for cybersecurity companies, which helped push a potential public debut toward an M&A outcome.
Key facts
- Deal price: $7.75 billion in cash.
- Armis age: nine years since founding.
- Recent financing: $435 million pre-IPO round last month that valued Armis at $6.1 billion.
- Revenue and growth: roughly $340 million in ARR and year-over-year growth exceeding 50%, according to ServiceNow.
- Total venture funding: about $1.45 billion raised, with investors including Sequoia, CapitalG and Insight Partners.
- Customers: provides security software for critical infrastructure used by Fortune 500 companies and governments, per the source.
- ServiceNow’s 2025 acquisition activity includes earlier agreements to buy Moveworks for $2.85 billion and Veza for $1 billion.
What to watch next
- Regulatory approval timeline and any conditions attached to the transaction: not confirmed in the source.
- How ServiceNow intends to integrate Armis technology into its security and IT workflows, and whether products will be rebranded or remain standalone: not confirmed in the source.
- Impact on Armis’s previously stated IPO plans and the timeline for investor returns: not confirmed in the source.
Quick glossary
- Annual Recurring Revenue (ARR): A metric that measures the predictable, recurring revenue components of a business over a one-year period.
- Pre-IPO round: A financing round conducted shortly before a company expects to go public, often intended to bolster the company’s balance sheet or valuation ahead of an IPO.
- Acquisition: When one company buys another company’s assets or shares to gain control, often to add capabilities, customers, or market share.
- Venture capital (VC): Investment provided to early- and growth-stage private companies in exchange for equity, typically with the expectation of a future exit via IPO or sale.
Reader FAQ
How much is ServiceNow paying for Armis?
$7.75 billion in cash.
Was Armis planning to go public?
Armis’s CEO had previously said the company aimed for an IPO in late 2026 or 2027, but the company agreed to a sale instead.
Who invested in Armis?
Armis raised about $1.45 billion from investors including Sequoia, CapitalG and Insight Partners.
When will the deal close?
Not confirmed in the source.
IN BRIEF Posted: 12:40 PM PST · December 23, 2025 IMAGE CREDITS: ARMIS Marina Temkin ServiceNow to acquire cybersecurity startup Armis for $7.75B Enterprise software company ServiceNow agreed to acquire…
Sources
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