Enterprise software company ServiceNow has agreed to acquire the nine-year-old cybersecurity startup Armis for $7.75 billion in cash. This deal represents a massive valuation jump for Armis. Just last month, the company raised a $435 million pre-IPO funding round that valued it at $6.1 billion.
Armis co-founder and CEO Yevgeny Dibrov stated last month that the company aimed to go public in late 2026 or 2027, calling an IPO his personal dream. However, given the unpredictability of IPO markets and the small number of cybersecurity companies that actually go public, it is not a surprise that Armis ultimately chose a merger and acquisition exit instead.
According to ServiceNow, Armis has reached $340 million in annual recurring revenue, with year-over-year growth exceeding 50 percent. Armis provides security software for critical infrastructure to Fortune 500 companies and governments, and it will help ServiceNow expand its own cybersecurity offerings.
This acquisition caps off a busy year of deals for ServiceNow, which also acquired Moveworks for $2.85 billion and agreed to acquire cybersecurity startup Veza for $1 billion. According to PitchBook, Armis has raised a total of $1.45 billion in venture capital from investors including Sequoia, CapitalG, and Insight Partners.