Tech company ServiceNow Inc. is reportedly in advanced negotiations to acquire Armis, a cybersecurity startup founded by Israeli military veterans, for a sum reaching up to $7 billion. This potential transaction, if finalized, would represent ServiceNow's largest acquisition to date, signaling a significant strategic move in the competitive technology landscape. While the discussions are understood to be in a late stage, and an announcement could be imminent, sources indicate that the deal might still collapse, or another bidder could emerge. ServiceNow's spokesperson declined to comment on the matter, and Armis representatives did not immediately respond to queries.

ServiceNow, based in Santa Clara, California, is a prominent provider of software solutions designed to automate and organize information technology (IT) and personnel operations for businesses. The company has established itself as a dominant platform for enterprise workflow, boasting a market capitalization close to $179.5 billion as of Friday's closing. This is not ServiceNow's first strategic acquisition aimed at enhancing its technological capabilities; in March, it agreed to purchase the AI firm Moveworks Inc. for $2.85 billion, a deal intended to integrate AI tools capable of completing tasks without human supervision.

Armis, headquartered in San Francisco, specializes in identifying and tracking security threats across various devices. Founded by veterans of Israeli military cyber intelligence, the company's expertise spans multiple sectors, including defense, financial services, and medicine. In August, Armis CEO Yevgeny Dibrov reported that the company achieved $300 million in annual recurring revenue for 2025, a substantial increase from $200 million a year prior. Dibrov also mentioned that the firm is considering an initial public offering (IPO) in 2026.

The cybersecurity startup has previously attracted significant investor interest. In 2020, Insight Partners, along with other investors including Alphabet’s CapitalG, acquired Armis for $1.1 billion. More recently, in September, private equity giant Thoma Bravo was also in discussions for a potential deal with Armis, indicating multiple offers from investors for a stake in the company.

The potential acquisition by ServiceNow reflects a broader trend among major tech companies to aggressively boost their cybersecurity portfolios and integrate advanced technologies. IT giants such as Microsoft and Salesforce Inc. are actively incorporating generative artificial intelligence (gen AI) features into their products. Concurrently, there's a strong push to embed robust cybersecurity solutions into tech offerings, exemplified by recent high-profile deals. Alphabet, Google's parent company, reportedly signed a deal in March to acquire cloud security firm Wiz Inc. for an estimated $32 billion. Similarly, Palo Alto Networks announced in July its intention to purchase Israeli company CyberArk Software for approximately $25 billion.