ServiceNow to buy cybersecurity startup Armis for $7.75 billion

Dec 23 (Reuters) – ServiceNow has agreed to buy cybersecurity startup Armis for $7.75 billion in cash, the companies said on Tuesday, as the enterprise software maker looks to attract new customers amid growing risks of cyberattacks. The company is aiming to integrate Armis' security features such as device scanning, threat detection and vulnerability prioritization to its AI-powered platform, a crucial advantage amid increasingly sophisticated cyberattacks that have hit companies ranging from Microsoft to UnitedHealth Group. Santa Clara, California-based ServiceNow's shares fell about 2% in premarket trading. ServiceNow shares slumped nearly 12% on December 15 after Bloomberg News reported about the potential Armis deal over the weekend. The selloff wiped off around $20 billion from the company's market value, a sign that investors scrutinized hefty spending goals of smaller cloud players. In recent months, ServiceNow has splurged on buying security firm Veza, AI company Moveworks and sales automation platform Logik.ai, formerly Logik.io, to expand its customer relationship management footprint and accelerate sales, order management, AI and security capabilities. Armis, valued at $6.1  billion in a funding round in November, was preparing for an initial public offering. The startup's latest financing was led by the alternative investment platform of Goldman Sachs. Existing investor CapitalG, Alphabet's VC arm, also participated in the round. Armis, founded in 2015, unveiled a three-year plan last month to reach $1 billion in annual recurring revenue after crossing the $300 million milestone in August. ServiceNow closed its $2.85 billion acquisition of Moveworks this month. It spent $506 million on Logik.ai, while financial details for Veza buyout were undisclosed. Its deal with Armis is expected to close in the second half of 2026. (Reporting by Kritika Lamba and Jaspreet Singh in Bengaluru; Editing by Sriraj Kalluvila and Shilpi Majumdar)

(The article has been published through a syndicated feed. Except for the headline, the content has been published verbatim. Liability lies with original publisher.)