ServiceNow to Buy Cybersecurity Company Armis for $7.75 Billion

ServiceNow stock tumbled last week when reports of a potential deal first broke. (Dreamstime)

Key Points

• ServiceNow agrees to acquire cybersecurity firm Armis for $7.75 billion in cash, marking its largest acquisition to date.
• The acquisition aims to expand ServiceNow’s security workflow offerings and enhance vulnerability response capabilities.
• The deal follows ServiceNow’s $2.85 billion acquisition of AI start-up Moveworks in March, reflecting a strategy to bolster AI offerings.

ServiceNow agreed to buy cybersecurity company Armis in an all-cash deal worth $7.75 billion—the largest acquisition in ServiceNow’s history.

The transaction is expected to close in the second half of 2026, the companies announced Tuesday.

Shares of ServiceNow fell 2%. The stock tumbled last week following reports that the enterprise software company was close to buying Armis.

Adding Armis will broaden ServiceNow’s security workflow offerings and improve vulnerability response at a time when artificial intelligence is boosting security spending, the company said. ServiceNow’s own security and risk business reached $1 billion in annual contract value in the third quarter.

“ServiceNow is building the security platform of tomorrow,” said CEO Amit Zavery in a statement. “In the agentic AI era, intelligent trust and governance that span any cloud, any asset, any AI system, and any device are non-negotiable if companies want to scale AI for the long-term.”

The Armis deal reflects the company’s willingness to use acquisitions as part of its effort to bolster AI-focused offerings. In March, ServiceNow agreed to purchase AI start-up Moveworks for $2.85 billion, which was at the time the company’s largest-ever acquisition.

Write to Nate Wolf at nate.wolf@barrons.com