By Kritika Lamba and Jaspreet Singh
Dec 23 (Reuters) – ServiceNow on Tuesday agreed to purchase cybersecurity startup Armis for $7.75 billion, within the enterprise software program maker’s biggest-ever deal, because it bolsters its providers to assist counter rising cyberattacks pushed by AI adoption.
By means of the deal, the corporate goals to combine Alphabet-backed Armis’ security measures reminiscent of gadget scanning and risk detection, a vital benefit amid refined cyberattacks which have hit firms starting from Microsoft to UnitedHealth Group.
Nonetheless, ServiceNow’s shares fell about 3%, as buyers fearful over the firm’s current splurge on acquisitions.
“Our safety stack, with the acquisition of Armis, could be very nicely positioned, so we can’t have to do any extra M&A in safety house,” ServiceNow Chief Monetary Officer Gina Mastantuono instructed Reuters.
The corporate expects the deal, scheduled to shut within the second half of 2026, to triple the market alternative for its safety and threat enterprise.
“ServiceNow’s shopping for spree reveals it is attempting to get forward of opponents on the orchestration and governance entrance by buying IP, tech management, and buyer bases,” mentioned Rebecca Wettemann, CEO of Valoir, an trade analysis and advisory agency.
In current months, ServiceNow has purchased safety agency Veza, AI firm Moveworks and gross sales automation platform Logik.ai, previously Logik.io. The corporate closed its $2.85 billion acquisition of Moveworks this month.
Armis, valued at $6.1 billion in a funding spherical in November, was making ready for an preliminary public providing.
The startup’s newest funding was led by the choice funding platform of Goldman Sachs. Current investor CapitalG, Alphabet’s VC arm, additionally participated within the spherical.
Armis, based in 2015, unveiled a three-year plan final month to succeed in $1 billion in annual recurring income after crossing the $300 million milestone in August.
(Reporting by Kritika Lamba and Jaspreet Singh in Bengaluru; Enhancing by Shilpi Majumdar and Sriraj Kalluvila)
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