ServiceNow To Buy Armis For $7.75 Billion As It Bets Big On Cybersecurity For AI

An anonymous reader quotes a report from MarketWatch: ServiceNow announced a deal to acquire cybersecurity company Armis on Tuesday, marking a new milestone in the software giant's artificial-intelligence business strategy. The $7.75 billion all-cash transaction is part of ServiceNow's goal of advancing governance and trust in autonomous AI agents, and the company's largest transaction to date. 'The acquisition of Armis will extend and enhance ServiceNow's Security, Risk, and [Operational Technology] portfolios in critical and fast-growing areas of cybersecurity and drive increased AI adoption by strengthening trust across businesses' connected environments,' the company wrote in a press release.

While ServiceNow built its foundation IT service management products, the company has positioned itself as an 'AI control tower' that orchestrates workflows across HR, customer service and security operations. Organizations today are operating in increasingly complex environments, with assets spanning from laptops and servers to smart grid devices, Gina Mastantuono, chief financial officer of ServiceNow, told MarketWatch on Tuesday. 'But at the same time, cyber threats are becoming more sophisticated and more complex,' she added.

ServiceNow's Security and Risk business crossed $1 billion in annual contract value earlier this year, and the Armis acquisition is expected to triple ServiceNow's market opportunity in the sector. Armis currently has over $340 million in annual recurring revenue, with growth exceeding 50% year-over-year, according to the press release. The Armis acquisition would allow ServiceNow to create an 'end-to-end proactive cybersecurity exposure and operations stack that enables enterprises to see, decide and act across a business' entire technology footprint,' Mastantuono said.

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