ServiceNow has completed its $7.75 billion acquisition of Armis. The all-cash transaction, announced in December, is designed to expand ServiceNow’s platform beyond IT workflows into broader security and risk management, particularly as artificial intelligence reshapes how organizations operate and defend themselves.
Since the deal was first announced, however, ServiceNow’s market value has fallen by roughly 36%, leaving the company with a market capitalization of about $103 billion. The decline reflects investor caution even as large technology companies continue to invest heavily in AI and related infrastructure.
Armis, founded in 2015 by Yevgeny Dibrov and Nadir Izrael, has grown rapidly in recent years. The company surpassed $300 million in annual recurring revenue and was valued at $6.1 billion in a funding round shortly before the acquisition was announced. Its technology provides organizations with real-time visibility into their entire digital and physical attack surface, helping identify and manage cyber risks across increasingly complex environments.
ServiceNow has been building out its security capabilities in parallel. Its earlier acquisition of Veza added identity intelligence, mapping access across users, machines, and systems. Together with Armis, the company is aiming to connect visibility into assets and identities with automated workflows that can respond to threats more quickly.
The companies frame this as a shift from reactive to more automated cybersecurity. In a post following the deal’s completion, Armis co-founder and CTO Nadir Izrael described the current environment as an “AI arms race,” with attackers using artificial intelligence to scale and accelerate cyberattacks. “To counter this, our defense must be equally, if not more, intelligent and autonomous,” he wrote.
ServiceNow said the combination of Armis and its existing platform will help organizations identify, prioritize, and remediate risks in real time, rather than relying on separate tools for detection and response. The company also plans to establish an AI Center for Cyber Defense focused on developing systems to counter AI-driven threats.
The acquisition is expected to significantly expand ServiceNow’s opportunity in security and risk, building on a business that has already surpassed $1 billion in annual contract value. Armis also brings an established customer base, including large enterprises and public sector organizations, many of which already use ServiceNow products.
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