ServiceNow spends $7.75 billion on Armis to boost cybersecurity amid SaaS doubts

ServiceNow paid $7.75 billion in cash to acquire Armis, a platform that monitors enterprise IoT devices for security risks, in April 2026. The purchase, the biggest in ServiceNow’s history, came after the company’s shares had tumbled up to 42% earlier in the year amid concerns that AI agents might make SaaS products redundant. Executives, including chief product officer Amit Zavery, argued that the deal allowed ServiceNow to combine cybersecurity, IT asset management and device monitoring into a single offering, forming an Autonomous Security and Risk unit with Armis and sister acquisition Veza.

The market responded positively, with the stock climbing 41% in May and adding another 8% after a strong earnings report, while revenue reached $3.99 billion and AI contracts surpassed $1 billion. Armis co-founder Yevgeny Dibrov became general manager of the new business unit, and co-founder Nadir Izrael took a vice-presidential role. The acquisition is seen as a key factor in reversing ServiceNow’s recent performance slump.