Enterprise software company ServiceNow agreed to acquire a nine-year-old cybersecurity startup, Armis, for $7.75 billion in cash.
The deal is a massive valuation jump for the company. Just last month, Armis raised a $435 million pre-IPO funding round, which valued the company at $6.1 billion.
Armis co-founder and CEO Yevgeny Dibrov had 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 IPO markets and how few cybersecurity companies actually go public, it is not a surprise that Armis ultimately chose an M&A exit.
According to ServiceNow, Armis has reached $340 million in annual recurring revenue (ARR), with year-over-year growth exceeding 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 off a busy acquisition year for ServiceNow, which scooped up 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.
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