After Alphabet and Paolo Alto Networks, tech company ServiceNow Inc., is in advanced talks to buy Armis, and Israeli military veterans-run cybersecurity ffor up to $7 billion, Bloomberg reported citing sources.
If it goes through, this would be ServiceNow’s largest acquisition to date.
They added that while the talks are late stage and a deal may be announced soon, it could also collapse or another potential bidder may emerge, as per the report.
ServiceNow spokesperson declined to comment, and a representative for Armis could not immediately respond to Bloomberg’Bloomberg’s queries on the matter, it added.
About ServiceNow and Armis
ServiceNow’s shares closed down around 0.3% in New York in Friday trading, giving the Santa Clara, California-based company a market value of about $179.5 billion.
Founded by veterans of Israeli military cyber intelligence, San Francisco-based Armis specializes in identifying and tracking security threats on devices, working across a range of industries, including medical, financial services and defense.
In early August, Armis’ chief executive officer, Yevgeny Dibrov, said the company had reached $300 million in annual recurring revenue, up from $200 million a year ago, and that it was still eyeing a public listing in 2026.
ServiceNow, which provides software that helps companies organize and automate their personnel and information technology operations, has become a dominant platform for enterprise workflow.
The company and other leading technology platforms, such as Salesforce Inc. and Microsoft Corp., have been competing to weave generative artificial intelligence features throughout their products. In March, ServiceNow struck an agreement to buy the AI firm Moveworks Inc. for $2.85 billion as part of its push into AI tools that can complete tasks without human supervision.
A deal for Armis would see ServiceNow follow several peers that have been aggressively embedding cybersecurity products into their own offerings. Google parent Alphabet Inc. in March agreed to acquire cloud security firm Wiz Inc. for $32 billion in cash. In July, Palo Alto Networks Inc. announced its purchase of CyberArk Software Ltd. in a deal valuing the Israeli company at about $25 billion.
Insight Partners agreed to acquire Armis in 2020 in a $1.1 billion deal that included other investors, such as Alphabet’s CapitalG.
Private equity giant Thoma Bravo had previously eyed a potential deal with Armis, and the startup’s executives said in September that they’d been weighing around six to seven offers from investors for a stake in the company.