ServiceNow (NOW) is in advanced talks to acquire the Israeli private cybersecurity firm Armis in a deal valued at up to $7 billion. According to people familiar with the matter, an announcement could come within days, although talks could still fall apart. If completed, the deal would be ServiceNow’s largest purchase to date.
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Meanwhile, ServiceNow shares closed down about 0.3% on Friday. As a result, the company’s market value stands at $179.5 billion.
Why Armis Matter
Armis focuses on finding and tracking security risks across connected devices. The company works with clients in healthcare, finance, and defense. Notably, Armis said in August that annual recurring revenue reached $300 million, up from $200 million a year earlier.
At the same time, Armis had been planning an initial public offering in 2026. The company was bought by Insight Partners in 2020 for $1.1 billion, alongside other investors. Earlier this year, Armis executives said they were reviewing several offers from outside investors.
How This Fits ServiceNow’s Strategy
ServiceNow sells software that helps companies manage staff and technology work in one place.
In recent years, the company has focused on adding AI tools to its platform. For example, in March, it agreed to buy Moveworks Inc. for $2.85 billion to expand task automation. Therefore, buying Armis would add built-in security to ServiceNow’s workflow tools.
This approach follows a wider trend across large technology firms. Earlier this year, Alphabet (GOOGL) agreed to acquire Wiz, another Israeli cybersecurity company, for $32 billion. At the same time, Palo Alto Networks (PANW) announced a deal to acquire CyberArk Software, also an Israeli-based firm, valued at about $25 billion.
Overall, a deal for Armis would place ServiceNow more firmly among platforms that blend operations, AI, and security under one roof.
Is ServiceNow a Good Stock to Buy?
On the Street, ServiceNow enjoys a Strong Buy consensus rating, based on 29 analysts. The average NOW stock price target is $1,154.04, implying a 33.41$ upside from the current price.
