ServiceNow to Acquire Armis for $7.75 Billion as Cybersecurity Risk in the AI Era Grows

ServiceNow has agreed to acquire cybersecurity startup Armis for $7.75 billion in cash (approx. ₹64,300 crore), a move aimed at significantly expanding its cybersecurity capabilities.

It being the enterprise software company’s largest acquisition till date will bring Armis’ cyber exposure management and cyber-physical security expertise, that it has been providing to Fortune 500 companies and governments, into ServiceNow’s platform, enabling organizations to better secure IT, operational technology (OT), IoT, and other connected environments.

By adding Armis, ServiceNow expects to more than triple its market opportunity in security and risk solutions and accelerate its shift toward autonomous, proactive cybersecurity driven by AI agents. Headquartered in Santa Clara, California, the company already crossed $1 billion in annual contract value in its Security and Risk business in the Q3 of 2025.

The deal is expected to close in the second half of 2026, subject to regulatory approvals. ServiceNow plans to fund the acquisition through cash on hand and debt, after which Armis’ approximately 950 employees will join ServiceNow.

Security the top most concern

Executives from both companies framed the deal as a response to the growing complexity of cyber risk in the AI era.

Amit Zavery, President and COO at ServiceNow said, “Together with Armis, we will deliver an industry-defining strategic cybersecurity shield for real-time, end-to-end proactive protection across all technology estates. Modern cyber risk doesn’t stay neatly confined to a single silo, and with security built into the ServiceNow AI Platform, neither will we.”

The acquisition comes as security remains a top concern for global CEOs. With AI and generative AI widening organizational attack surfaces, enterprises are demanding real-time visibility into vulnerabilities and faster, more automated responses.

Yevgeny Dibrov, co-founder and CEO, Armis said, it was built to protect critical environments by giving public and private organizations real-time visibility into cyber risks, enabling them to act before incidents occur. Combined with ServiceNow, the company said customers will gain a stronger, more scalable approach to reducing cyber exposure and improving security.

Armis enters the transaction with strong momentum. The company has surpassed $340 million in annual recurring revenue, is growing ARR at more than 50% year-over-year.

The combined offering will also strengthen security in cyber-physical environments such as manufacturing, healthcare, and critical infrastructure—areas where traditional IT security tools often fall short.

Industry observers see the deal as strategically significant. Larry Feinsmith, head of Global Tech Strategy, Innovation & Partnerships at JPMorgan Chase, said the combination provides enterprises with a dynamic view of connected assets and an AI-driven blueprint to secure trusted AI deployments