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Key Takeaways
- ServiceNow is reportedly close to acquiring Internet of Things cybersecurity firm Armis.
- The deal could be worth as much as $7 billion, Bloomberg reported.
Shares of ServiceNow (NOW) sank Monday following a report the the AI-driven enterprise software provider was close to purchasing Internet of Things security startup Armis for as much as $7 billion.
Bloomberg reported the two companies are in advanced talks and an agreement may be announced soon. If it happens, the acquisition would be the largest ever by ServiceNow, Bloomberg said.
The addition of Armis would give ServiceNow access to the company’s cyber security platform that discovers, protects and manages all of its customers’ connected devices.
ServiceNow shares were down more than 11% recently, pacing S&P 500 decliners on Monday and trading at their lowest level since April. The stock has lost more than a quarter of its value since the start of 2025.
Why This News Matters
ServiceNow’s reported interest in Armis received a negative reaction from investors, who may be concerned about the potential cost of the deal. Often, shares of a company making a big acquisition fall when news of the transaction breaks. In this case, the slide adds to a rough year for ServiceNow shares.
Armis is owned by tech-oriented private equity and venture capitalist firm Insight Partners, which bought it in 2020 for $1.1 billion. At the time, Insight Managing Director Jeff Horing said Insight will be a “partner Armis can leverage to help execute their vision of protecting unmanaged devices proliferating every vertical around the world.”
Recently, Alphabet’s (GOOGL) Google and Palo Alto Networks (PANW) announced their own purchases of cybersecurity companies.
Investopedia reached out to both ServiceNow and Armis but didn’t receive comments from the companies before publication.
