ServiceNow In Talks To Buy Cybersecurity Unicorn Armis

ServiceNow  (NYSE:NOW) is reportedly in advanced talks to acquire cybersecurity firm Armis, which could value the startup at up to $7 billion, according to people familiar with the matter.

The transaction could be announced in the coming days, though negotiations are ongoing and could still fall through. Another bidder could also emerge before any agreement is finalized, according to Bloomberg.

If completed, the purchase would be ServiceNow’s largest acquisition to date. Neither ServiceNow nor Armis immediately responded to requests for comment outside business hours.

Also Read: ServiceNow Makes Major AI Play To Modernize Canada’s Public Sector

About Armis and Business Momentum

Founded in 2016, Armis is a U.S.-Israeli cybersecurity company dedicated to the real-time protection of connected devices. The company counts more than 40% of the Fortune 100 as customers.

Armis was last valued at $6.1 billion after raising $435 million in November, in a pre-IPO funding round led by Goldman Sachs Alternatives’ growth equity fund with participation from CapitalG and new investor Evolution Equity Partners.

The raise followed continued momentum, with Armis surpassing $300 million in annual recurring revenue and serving more than 40% of the Fortune 100, as the company works toward a potential IPO and a longer-term goal of reaching $1 billion in ARR.

Analyst Commentary

Separately, Keybanc analyst Jackson Ader downgraded ServiceNow from Sector Weight to Underweight and set a $775 price target.

AI Investment and Corporate Developments

ServiceNow also recently announced plans to invest 110 million Canadian dollars to accelerate AI adoption across Canadian government agencies.

The company will build Canada-hosted infrastructure, launch a Canada Centre of Excellence, enhance data residency and security, and hire about 100 Canada-based employees. Additionally, shareholders approved a 5-for-1 stock split.

NOW Price Action: ServiceNow shares were down 8.11% at $794.92 at the time of publication on Monday, according to Benzinga Pro data.

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