ServiceNow (NOW.US) plans to acquire network security company Armis for 7 billion US dollars, potentially setting a new record for company acquisitions.

Enterprise software giant ServiceNow Inc. (NOW.US) is reportedly in advanced negotiations to acquire cybersecurity startup Armis, with the deal estimated to be as high as $7 billion USD. If successful, it would be the largest acquisition for ServiceNow to date. According to sources familiar with the matter, the deal could be announced in the coming days. They also noted that while the negotiations are in the later stages, there is still a risk of the deal falling through or other potential bidders emerging. A ServiceNow spokesperson declined to comment, while representatives from Armis did not immediately respond to requests for comment. As of last Friday's closing, ServiceNow's stock price fell by about 0.3%, with the company currently valued at around $179.5 billion USD and headquartered in Santa Clara, California. Armis, based in San Francisco and founded by senior personnel from the Israeli military intelligence sector, focuses on identifying and tracking device security threats, with operations covering industries such as healthcare, financial services, and defense. In early August of this year, Armis CEO Yevgeny Dibrov stated that the company's annual recurring revenue had reached $300 million USD, a significant increase from $200 million USD the previous year, with plans to go public by 2026. ServiceNow's main business is organizational and automation software for enterprise HR and IT operations, making it a leading platform in the field of enterprise workflow. The company, alongside other top tech platforms like Salesforce, Inc. (CRM.US) and Microsoft Corporation (MSFT.US), is integrating generative AI capabilities into their products. In March of this year, ServiceNow acquired AI company Moveworks Inc. for $2.85 billion USD as a key move in expanding their AI-powered tools for unsupervised task execution. If the acquisition of Armis is successful, ServiceNow will follow in the footsteps of industry peers, as several tech companies have recently been integrating cybersecurity products into their business ecosystems. For example, in March of this year, Alphabet Inc. Class C (GOOGL.US) acquired cloud security company Wiz Inc. for $3.2 billion USD in cash; in July, Palo Alto Networks (PANW.US) announced the acquisition of Israeli cybersecurity company CyberArk Software, with the deal estimated at around $25 billion USD. Notably, in 2020, Insight Partners, along with Alphabet Inc. Class C's Capital G and other investors, acquired Armis for $1.1 billion USD. Private equity giant Thoma Bravo had also considered a deal with Armis before. In September, Armis executives revealed that the company had received about 6 to 7 stock acquisition offers from investors.