ServiceNow Inc. (NASDAQ: NOW)  is in advanced discussions to acquire cybersecurity startup Armis in a transaction that could value the company at as much as $7 billion, according to people familiar with the matter.The talks are said to be in late stages, and an announcement could come within days, though the discussions remain private and may still fall apart or attract competing bidders. ServiceNow declined to comment on the reported negotiations, while Armis did not immediately respond to requests for comment.

Founded by veterans of Israeli military cyber intelligence, San Francisco-based Armis specializes in identifying, monitoring, and securing devices across enterprise networks. Its platform is used by organizations in industries including healthcare, financial services, and defense to track and mitigate security threats across connected devices.Armis has experienced rapid growth, reaching $300 million in annual recurring revenue, up from $200 million a year earlier, according to comments made in early August by Chief Executive Officer Yevgeny Dibrov. The company had been preparing for a potential initial public offering next year before acquisition talks emerged.

The potential transaction comes amid heightened merger activity across the cybersecurity sector, driven in part by the increasing use of artificial intelligence to detect and respond to cyber threats. Earlier this year, Google parent Alphabet Inc. agreed to acquire cloud security firm Wiz for $32 billion, while Palo Alto Networks announced a deal in July to purchase CyberArk Software in a transaction valued at roughly $25 billion.

Armis has previously attracted significant investor interest. In 2020, Insight Partners led a $1.1 billion acquisition of the company alongside other investors, including Alphabet’s CapitalG. More recently, private equity firm Thoma Bravo had been linked to potential interest, and Armis executives indicated in September that the company had received six to seven offers from investors exploring a stake.If completed, the deal would represent one of ServiceNow’s largest acquisitions to date and further underscore the strategic importance of cybersecurity capabilities as enterprise software companies expand their platforms to address growing digital risk.

About ServiceNow, Inc.

ServiceNow, Inc. (NYSE: NOW) is a leading enterprise software company that provides cloud-based platforms designed to automate and streamline digital workflows across IT, employee, and customer operations. Headquartered in Santa Clara, California, ServiceNow serves organizations worldwide, helping them improve efficiency, security, and operational performance through its workflow-driven technology solutions.

About Armis

Armis is a cybersecurity company focused on asset visibility and device security across enterprise environments. Founded by former Israeli military cyber intelligence veterans, the company provides solutions that identify, monitor, and protect connected devices in industries such as healthcare, finance, and defense. Armis is headquartered in San Francisco and has rapidly scaled its platform amid rising global demand for advanced cyber threat detection.

At the time of publishing, Stocks.News holds positions in Alphabet as mentioned in the article.