Enterprise software company ServiceNow has agreed to acquire nine-year-old cybersecurity startup Armis for $7.75 billion in cash.
This transaction represents a significant valuation boost for the company. Just last month, Almis raised $435 million in a pre-IPO funding round, valuing the company at $6.1 billion.
Armis co-founder and CEO Evgeny Dibrov told TechCrunch last month that the company aims to go public in late 2026 or 2027, adding that an IPO is his “personal dream.”
Given the unpredictability of the IPO market and how few cybersecurity companies actually go public, it's no surprise that Armis ultimately opted to exit M&A.
According to ServiceNow, Armis' annual recurring revenue (ARR) has reached $340 million, with year-over-year growth of more than 50%.
Armis, which provides security software for critical infrastructure to Fortune 500 companies and governments, will help ServiceNow expand its cybersecurity offerings.
The deal caps a busy year of acquisitions for ServiceNow, which raised 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.