American software company ServiceNow announced its largest acquisition to date by purchasing cybersecurity firm Armis for $7.75 billion (approximately ₹65,000 crore) in an all-cash deal. The transaction is expected to close in the second half of 2026.
This acquisition comes at a time when the global use of AI, IoT, and digital systems is growing rapidly, along with increasing cybersecurity threats.
Key Headlines of the Deal
- ServiceNow’s largest acquisition ever
- Focus on strengthening AI-driven cybersecurity capabilities
- About 950 Armis employees will join ServiceNow
- ServiceNow shares saw a slight dip following the announcement
About ServiceNow
ServiceNow is a U.S.-based cloud software company that provides solutions for:
- Digital workflows
- Automation
- AI-enabled business processes
Its platform helps enterprises and government organizations streamline work, improve efficiency, and enhance security.
ServiceNow is publicly listed on the New York Stock Exchange under the ticker NYSE: NOW.
About Armis
Armis is a cybersecurity company that provides full visibility and protection for an organization’s connected environment, including:
- IT systems
- Operational Technology (OT)
- IoT and connected devices
- Medical and industrial devices
Armis’s platform identifies every device on a network without agents and assesses cybersecurity risks in real time, making it popular among governments, healthcare, and critical infrastructure sectors.
Why ServiceNow Acquired Armis
ServiceNow believes that in the future, cybersecurity should not be fragmented across multiple tools, but integrated into a single platform.
Through this acquisition:
- AI and cybersecurity capabilities will be combined
- Companies will get protection across IT and industrial systems from a single platform
- Threat detection and response will be automated
In simple terms, ServiceNow is transforming from a “work management company” into a secure digital operations platform.
What Changes with the New Technology?
The combined ServiceNow-Armis platform will enable:
- Real-time device monitoring
- Threat prioritization
- Immediate AI-driven response
- Integrated security and operations control
All features will be available on a single unified system.
Stock Market Reaction
Following the announcement, ServiceNow shares showed slight weakness.
Investors are concerned that the high-cost acquisition may put short-term pressure on profits, but the company says the decision is aimed at long-term growth.
Analysis
This acquisition highlights that:
- AI and cybersecurity are increasingly becoming integrated
- Companies are moving toward a “one platform, all solutions” approach
- Tech and cybersecurity are likely to lead global M&A trends in 2025–26
The deal positions ServiceNow more competitively against firms like Microsoft, Palo Alto Networks, and CrowdStrike.
Outcome
ServiceNow’s acquisition of Armis is not just a business transaction, but a strategic move toward AI-driven cybersecurity.
While the deal is expensive, the growing demand for digital security and AI solutions could make this acquisition a game-changer for ServiceNow.
Source: ServiceNow press
