ServiceNow Inks $7.75B Deal for Armis in AI Cybersecurity Push
The all-cash acquisition, ServiceNow's largest to date, aims to unify asset management and security across corporate IT, industrial, and medical devices.
ServiceNow (NYSE: NOW) has announced its largest acquisition ever, agreeing to buy cybersecurity firm Armis for approximately $7.75 billion in an all-cash transaction. The deal marks a major strategic acceleration into AI-powered security, aiming to provide a comprehensive shield for the entire digital footprint of modern enterprises, from data centers to industrial equipment and medical devices.
The announcement sent ripples through the tech sector, though ServiceNow shares dipped 2.6% to $152.55 in morning trading, a common reaction as investors digest the scale of the significant cash outlay. With a market capitalization of over $161 billion, the acquisition represents a substantial but calculated bet on the future of integrated enterprise security.
The move is intended to create what ServiceNow frames as the "security platform of tomorrow." By integrating Armis's market-leading asset intelligence capabilities into its own powerful workflow automation platform, ServiceNow aims to provide a single, definitive source for viewing, managing, and securing the sprawling landscape of connected devices.
"Together with Armis, we will deliver an industry-defining strategic cybersecurity shield for real-time, end-to-end proactive protection across all technology estates," Amit Zavery, ServiceNow's President and COO, said in a statement. "Modern cyber risk doesn’t stay neatly confined to a single silo, and with security built into the ServiceNow AI Platform, neither will we."
Armis specializes in discovering and classifying every device connected to a network—including IT, operational technology (OT) common in industrial settings, and the Internet of Medical Things (IoMT). This capability closes a critical visibility gap for many organizations as the number of unmanaged devices proliferates. According to a report on the deal, the combination is set to more than triple ServiceNow's total addressable market in security.
The strategic importance of this visibility is amplified by the rise of generative AI, which is creating new attack vectors.
"AI is transforming the threat landscape faster than most organizations can adapt," noted Yevgeny Dibrov, co-founder and CEO of Armis. "Every connected asset has become a potential point of vulnerability."
The acquisition will embed Armis’s asset discovery and classification data directly into ServiceNow’s Configuration Management Database (CMDB), enriching it with real-time information. This allows ServiceNow's automated workflows to trigger responses to threats, vulnerabilities, and asset non-compliance across the entire environment, promising a more proactive and resilient security posture for customers.
This deal is the culmination of ServiceNow's increasing focus on cybersecurity and AI. The company has steadily expanded its security and risk management offerings, and this acquisition provides a foundational layer of asset intelligence that underpins its entire strategy. Analysts see the move as a direct challenge to standalone cybersecurity vendors and a significant step in ServiceNow’s evolution into an all-encompassing platform for digital business operations. As some industry watchers note, it positions ServiceNow to build an "AI control tower for business reinvention."
The transaction is expected to close in the second half of 2026, subject to customary regulatory approvals. Upon closing, Armis will continue to operate as a distinct business unit within ServiceNow, ensuring continuity for its existing customer base while powering new, integrated solutions.