Enterprise software heavyweight ServiceNow (NYSE: NOW) has sealed its biggest acquisition yet, paying US$7.75 billion in cash for cybersecurity specialist Armis. The deal transforms ServiceNow into a comprehensive security powerhouse covering everything from IT systems to industrial equipment and medical devices.
The transaction comes just weeks after Armis raised US$435 million at a US$6.1 billion valuation, positioning itself for an eventual public listing. That IPO plan is now shelved as ServiceNow swoops in with what amounts to roughly 27 per cent above Armis’s most recent funding round valuation.
For Australian enterprises wrestling with increasingly sophisticated cyber threats, this acquisition signals a major shift in how security platforms will operate in the AI era.
Why This Deal Matters for Global Cybersecurity
ServiceNow didn’t just buy a cybersecurity company. It bought the capacity to see, secure, and manage every connected device across an enterprise, including those that traditional security tools miss entirely.
Armis specialises in what industry insiders call “cyber exposure management.” Its platform monitors operational technology (OT), Internet of Things (IoT) devices, and medical equipment without installing software agents on endpoints.
ServiceNow headquarters in Santa Clara, California
Key capabilities Armis brings to ServiceNow include:
- Real-time visibility across IT, OT, IoT, and medical device networks
- Agentless security monitoring that doesn’t disrupt production systems
- AI-powered threat detection across billions of connected devices globally
- Integration with existing security infrastructure and workflow systems
The acquisition is expected to more than triple ServiceNow’s addressable market in security and risk solutions, expanding its total opportunity from roughly US$27 billion to over US$80 billion.
Strategic Timing in the AI-Powered Threat Landscape
The deal arrives as cybersecurity threats evolve at breakneck speed, driven by AI-powered attacks and expanding digital attack surfaces.
Amit Zavery, ServiceNow’s President and Chief Product Officer, addressed the urgency directly. “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,” he stated in the announcement.
Worldwide spending on information security is projected to hit US$240 billion in 2026, growing 12.5 per cent year-over-year according to Gartner forecasts. Rising AI adoption and increasingly sophisticated threats are the primary growth drivers.
ServiceNow’s Security and Risk business crossed the US$1 billion annual contract value threshold in Q3 2025, establishing the company as a legitimate security leader before this acquisition.
How Armis Became a US$7.75 Billion Prize
Founded in 2015 by Israeli intelligence veterans Yevgeny Dibrov and Nadir Izrael, Armis has grown from a niche player protecting unmanaged devices into a comprehensive cyber exposure platform trusted by over 35 per cent of Fortune 100 companies.
The startup’s growth trajectory tells its own story:
- 2020: Insight Partners acquires majority stake at US$1.1 billion valuation
- 2021: US$300 million funding round at US$3.4 billion valuation
- October 2024: US$200 million raise at US$4.2 billion valuation
- November 2025: US$435 million funding at US$6.1 billion valuation
- December 2025: ServiceNow acquisition at US$7.75 billion
Armis recently surpassed US$340 million in annual recurring revenue, growing at over 50 per cent year-over-year. The company employs approximately 950 people globally.
Major clients include Nasdaq, Mondelez International, United Airlines, Port of Antwerp-Bruges, Colgate-Palmolive, and DocuSign. Seven of the Fortune 10 companies use Armis technology.
What This Means for Australian Businesses
Australian organisations face mounting cybersecurity challenges, with ransomware incidents and sophisticated phishing attacks on the rise.
The combined ServiceNow-Armis platform will offer several advantages for Australian enterprises:
Unified visibility: Single pane of glass across managed IT systems, unmanaged IoT devices, operational technology, and medical equipment.
Automated response: Integration with ServiceNow’s workflow automation means security teams can remediate threats at scale without manual intervention.
Reduced complexity: Instead of managing multiple point solutions, organisations get integrated security, risk management, and operational workflows.
AI-powered defence: Armis analyses behavioural data from billions of devices worldwide to detect anomalies and threats in real-time.
Recent Accenture research found 97 per cent of Australian organisations aren’t adequately prepared to secure their AI-driven future. This acquisition directly addresses that gap.
Deal Structure and Financial Implications
ServiceNow will fund the US$7.75 billion all-cash transaction through a combination of existing cash reserves and debt. The deal is expected to close in the second half of 2026, subject to customary regulatory approvals.
Upon closure, Armis’s roughly 950 employees will join ServiceNow. The Israeli company’s Tel Aviv operations will continue, preserving local R&D capabilities.
The acquisition price represents roughly 4 per cent of ServiceNow’s US$179 billion market capitalisation. When news of potential acquisition talks first emerged in mid-December 2025, ServiceNow shares initially dropped 11 per cent as investors digested the financial commitment required.
However, markets have since stabilised as the strategic rationale becomes clearer. ServiceNow’s security and risk portfolio already generates over US$1 billion in annual contract value, and Armis accelerates the company’s path toward autonomous proactive cybersecurity.
Global cybersecurity market growth projections through 2030
Broader Industry Implications
ServiceNow’s Armis acquisition follows a pattern of enterprise software giants moving aggressively into cybersecurity through strategic acquisitions rather than organic development.
Earlier this year, Alphabet acquired Wiz for US$32 billion, signalling Google’s commitment to cloud security dominance. That deal remains the tech industry’s largest cybersecurity acquisition on record.
For ServiceNow specifically, Armis represents the third major acquisition in 2025:
- March 2025: AI assistant company Moveworks for US$2.85 billion
- December 2025: Identity security firm Veza for over US$1 billion
- December 2025: Armis for US$7.75 billion
This aggressive M&A strategy positions ServiceNow as a comprehensive AI control tower for business operations, security, and risk management.
What Happens Next
The transaction requires regulatory approval from competition authorities in multiple jurisdictions. Given the size and strategic importance, scrutiny is expected but major roadblocks seem unlikely.
ServiceNow and Armis already collaborate as partners, with multiple existing integrations connecting Armis’s threat intelligence to ServiceNow’s workflow automation. This existing relationship should smooth technical integration post-acquisition.
Investors and enterprise customers will watch closely to see how ServiceNow integrates Armis’s technology stack into its Now platform. The company has historically maintained strict architectural discipline, avoiding the portfolio approach of legacy software vendors.
Charles Betz, analyst at Forrester, noted the integration challenge: “The big question with both Armis and Veza is, are they going to maintain those legacy code bases and start risking going down the road of the old software portfolio vendors, or are they going to actually reimplement on the Now platform?“
Expert Analysis
Yevgeny Dibrov, Armis CEO and co-founder, framed the acquisition in terms of accelerating threats: “AI is transforming the threat landscape faster than most organisations can adapt. Every connected asset has become a potential point of vulnerability.”
He continued: “We built Armis to protect the most critical environments and give both public and private sector organisations the real-time intelligence they need to stay ahead, so they can see their entire environment clearly, understand risk in context, and take action before an incident occurs.”
Industry observers see this as validation of the cyber exposure management category Armis pioneered. As organisations adopt AI at scale, visibility into every connected asset, from servers to sensors to surgical equipment, becomes non-negotiable.
Looking Ahead
The ServiceNow-Armis combination creates a formidable competitor in enterprise security, particularly as AI adoption expands attack surfaces exponentially.
For Australian businesses, the deal signals a future where security, IT operations, and risk management converge into unified platforms rather than fragmented point solutions.
As data breaches and sophisticated attacks continue escalating globally, enterprises that can see, understand, and respond to threats across their entire technology footprint will have significant competitive advantages.
The transaction is expected to close in H2 2026, subject to regulatory approvals.
