At the end of 2025, ServiceNow rounded off the year with its single largest acquisition to date: The cybersecurity company Armis.
With a price tag of $7.75B, it is almost three times the value of ServiceNow’s next most-expensive acquisition. It also came just a few weeks after another security-focused purchase, the “AI-native identity security platform” Veza. With 2026 now firmly underway, it’s clear that cybersecurity is a significant priority for ServiceNow.
But the company’s seventh acquisition of 2025 hasn’t been plain sailing, with investor concerns about the price tag causing ServiceNow’s stock price to fall to its lowest value since April 2025.
ServiceNow Rounds Off 2025 With Its Biggest Acquisition to Date
The acquisition was announced just before Christmas, following rumors that we reported on in the days beforehand.
Armis is a cybersecurity company that specializes in cyber exposure management and cyber-physical security. The company enables customers to monitor and manage the security posture of operational technology (OT), as well as medical, internet of things (IoT), and industrial devices. According to ServiceNow, this technology will complement its Configuration Management Database (CMDB) and the relatively new ServiceNow AI Control Tower.
ServiceNow and Armis have been partners for some time, with their respective platforms already offering multiple integrations with each other. Given Armis’ focus on complex operational technology, it’s clear that the platforms are well-matched.
ServiceNow Doubles Down on Security
“ServiceNow is building the security platform of tomorrow. In the agentic AI era, intelligent trust and governance that span any cloud, any asset, any AI system, and any device are non-negotiable if companies want to scale AI for the long term.
Together with Armis, we will deliver an industry-defining strategic cybersecurity shield for real-time, end-to-end proactive protection across all technology estates. Modern cyber risk doesn’t stay neatly confined to a single silo, and with security built into the ServiceNow AI Platform, neither will we.”
Amit Zavery, President, Chief Operating Officer, and Chief Product Officer at ServiceNow
While ServiceNow hasn’t historically been considered a security vendor, the developments of the last few years have clearly focused minds. In particular, agentic AI is beginning to have a tangible impact on the threats that organizations are facing and how they defend against them. NowBen recently spoke to ServiceNow’s Matthew Higham, about this very topic:
“What we’re doing is creating a platform that gives confidence at the board level. When you start moving into an agentic world, you’re asking those agents to do tasks and execute on behalf of what was a human…”
“We absolutely need to make sure that both organizations and individuals have accountability on what those agents are doing, how they’re doing it, [and] how they’re executing it.”
Matthew Higham, Chief Digital and Technology Officer, UK and Ireland at ServiceNow
Has the Armis Acquisition Spooked Investors?
Given this context, it’s unsurprising that ServiceNow decided to round off 2025 with two high-profile security acquisitions. But the decision hasn’t been without controversy.
In the days since, ServiceNow’s stock price has sunk to a low of $146.19 (closing value, January 8, 2026). This mirrors a trend we saw after the Moveworks acquisition last year, which was valued at $2.85B. Then, investor fears about the size of the price tag and the complexity of integration caused downward pressure on the NOW stock.
Given the Armis purchase is almost three times the value of Moveworks, it’s unsurprising that a similar effect can now be seen.
In 2025, ServiceNow acquired more companies than any other year in its history, with Armis marking the seventh of the year. Of these, three reportedly crossed the $1B mark, with the Veza valuation being rumored to cost between $1B-$1.5B. Given the impact these have had on ServiceNow’s stock price, can we expect 2026 to feature fewer acquisition announcements than last year? Only time will tell.