ServiceNow has announced its intention to purchase cybersecurity startup Armis for $7.75 billion in cash. This acquisition represents a significant increase in valuation for Armis, which recently secured $435 million in pre-IPO funding, placing its worth at $6.1 billion.
Armis, known for its security solutions for critical infrastructure, reported an impressive $340 million in annual recurring revenue, with a growth rate exceeding 50% year-over-year. The startup's leadership had previously indicated plans for an IPO, aiming for a public offering in late 2026 or 2027. However, the volatile nature of the IPO market likely influenced the decision to pursue a merger and acquisition exit instead.
This acquisition aligns with ServiceNow's strategy to enhance its cybersecurity portfolio, following a series of other purchases this year, including Moveworks for $2.85 billion and Veza for $1 billion. Overall, Armis has attracted $1.45 billion in venture funding from notable investors such as Sequoia, CapitalG, and Insight Partners.