ServiceNow $NOW ( ▼ 1.48% ) is going shopping in a big way. The enterprise software giant agreed to acquire cybersecurity firm Armis for $7.75 billion in cash, marking the largest acquisition in ServiceNow’s history and a clear signal that security is becoming core to its AI strategy.
Cybersecurity just became mandatory, not optional
Armis specializes in identifying and monitoring threats across connected devices, from corporate laptops to medical equipment and industrial systems. As companies plug more AI tools into their operations, the attack surface grows fast. ServiceNow is betting that customers will want security embedded directly into their workflow software, not bolted on later.
Management framed the deal as a trust play. More AI adoption only works if companies feel confident their systems will not break, leak data, or get taken offline. Armis gives ServiceNow deeper visibility into vulnerabilities before something goes wrong.
Paying up to stay ahead
The $7.75 billion price tag came in well above recent private market valuations. Armis was valued about $6.1 billion in a November funding round and had been preparing for an IPO. Instead of waiting, ServiceNow moved decisively and paid a premium to lock it down.
Armis is not a small tuck-in either. The company crossed $300 million in annual recurring revenue this year and was growing quickly across industries like healthcare, finance, and defense. That scale helps justify the sticker shock.
AI deals are getting bigger and bolder
This is ServiceNow’s second major AI-adjacent acquisition in under a year, following its $2.85 billion purchase of Moveworks. Across tech, the trend is clear. Big platforms are buying specialized security and AI firms rather than building everything internally.
With rivals like Alphabet $GOOGL ( ▲ 1.48% ) and Palo Alto Networks $PANW ( ▼ 0.72% ) also spending aggressively in cybersecurity, ServiceNow is signaling it plans to compete at the top end of the enterprise stack. The deal is expected to close in the second half of 2026, pending regulatory approval.
In short, ServiceNow just made cybersecurity a first-class citizen in its platform, and it paid up to make sure it stays that way.