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