U.S.-based enterprise software company ServiceNow announced on Tuesday that it has agreed to acquire Israeli cybersecurity firm Armis in a cash transaction valued at $7.75 billion. In addition to the purchase price, the agreement includes retention grants totaling several hundred million dollars for Armis employees who will remain with ServiceNow after the acquisition.
The transaction is subject to regulatory approvals and is expected to close in the second half of 2026. Following completion, Armis’ employees will join ServiceNow.
From IPO Candidate to Major Acquisition
Armis was founded in November 2015 by CEO Yevgeny Dibrov, Chief Technology Officer Nadir Yizreel, and Tomer Schwartz, who left the company in 2017.
The sale represents Armis’ second major exit. In 2020, Insight Partners, together with Google’s CapitalG, acquired a majority stake in the company at a valuation of $1.1 billion. As part of that transaction, early investors such as Bain Capital and Sequoia sold their holdings, while others, including Israel’s Red Dot and Canada’s Georgian, retained partial stakes.
Since then, Armis has raised several additional funding rounds, adding investors such as Alkeon, Evolution and General Catalyst. Insight Partners remained the company’s largest shareholder and will be the main beneficiary of the sale.
As recently as November, Armis completed a $435 million funding round led by Goldman Sachs’ growth fund at a valuation of $6.1 billion. At the time, the company described the round as a pre-IPO investment, positioning itself for a public offering in late 2026 or early 2027.
Market Conditions Drive Strategic Shift
Following the sale of Waze, Armis had been widely viewed as the Israeli cybersecurity company most likely to pursue a major IPO on Wall Street. Founders Dibrov and Yizreel had repeatedly stated their ambition to take the company public and grow it into a business valued at tens of billions of dollars.
However, shifting market conditions appear to have influenced the decision to sell. In November, Dibrov said a full sale was not under consideration and that Armis aimed to reach $1 billion in annual recurring revenue (ARR) within three years.
According to ServiceNow, Armis has now surpassed $340 million in ARR and is growing at a rate of more than 50% annually. While these figures are considered strong, recent cybersecurity IPOs have generally entered public markets with revenues exceeding $600 million.
Insight Partners founder Jeff Horing previously expressed skepticism about the public markets. Speaking to journalists in May, he noted prolonged IPO droughts and the difficulty of sustaining valuations below $5–10 billion in the public arena. He warned that stock volatility and limited upside often make public listings challenging for both management and employees.
Armis’ Technology and Market Expansion
Armis began by focusing on the security of Internet of Things (IoT) devices, such as printers, smart climate systems and industrial controllers. Over time, it expanded into broader asset discovery and device management, competing with companies such as Israel’s Exonius.
The company has also entered the medical device security market and expanded into industrial cybersecurity through its acquisition of Israeli firm Autorio, placing it in competition with Claroty.
More recently, Armis moved into cyber risk exposure and vulnerability management, competing with established public companies such as Tenable, Rapid7 and Qualys. As part of this strategy, Armis acquired Israel’s Silk Security last year. According to Dibrov, Silk’s annual revenue grew from $600,000 at acquisition to $40 million within 18 months.
Armis currently employs approximately 950 people worldwide and serves around 2,000 organizations, including more than 35% of the 100 largest U.S. companies.
ServiceNow Expands Cyber and Risk Portfolio
ServiceNow develops platforms for digital workflows and autonomous business processes. Its cyber and risk management division surpassed $1 billion in contract value last quarter, largely through internal development.
The company has signaled its intent to accelerate growth in this area through acquisitions. Earlier this month, ServiceNow acquired identity security firm Veza for $1 billion, a move that now appears to have preceded the far larger Armis deal.
ServiceNow stated that it plans to finance the acquisition using a combination of existing cash reserves and new debt.
Founder’s Background
CEO Yevgeny Dibrov was born in the former Soviet Union, in what is now Ukraine, and immigrated to Israel in 1992 at the age of four. His family settled in Rehovot, where his mother worked in agriculture after emigrating, and his grandfather found work as a gas station attendant.
Dibrov later served in the elite Talpiot program and Unit 81 of the IDF, where he worked under Assaf Rappaport, now CEO of Wiz. After his military service, Dibrov joined Adallom as vice president of business development. Microsoft acquired Adallom in 2015, and six months later Dibrov went on to co-found Armis.
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