ServiceNow, a leading enterprise software company, has made a significant move in the cybersecurity space by acquiring Armis, a nine-year-old startup, for a whopping $7.75 billion in cash.
The acquisition marks a substantial increase in valuation for Armis, as just last month, the company secured a $435 million pre-IPO funding round, valuing it at $6.1 billion.
Armis’ co-founder and CEO, Yevgeny Dibrov, expressed his aspiration for the company to go public in the coming years, but the decision to opt for an acquisition instead of an IPO aligns with the current market trends.
ServiceNow highlighted Armis’ impressive financial performance, with annual recurring revenue (ARR) surpassing $340 million and a growth rate of over 50% year-over-year.
Specializing in security software for critical infrastructure, Armis serves Fortune 500 companies and governments, making it a strategic addition to ServiceNow’s cybersecurity portfolio.
This acquisition adds to ServiceNow’s recent spree of purchases, including Moveworks for $2.85 billion and Veza for $1 billion, solidifying its position in the cybersecurity market.
PitchBook data shows that Armis has amassed $1.45 billion in venture capital from top investors like Sequoia, CapitalG, and Insight Partners.
