Bloomberg reported that ServiceNow, a software company, is engaged in advanced negotiations to acquire cybersecurity startup company, Armis, recently valued at $6.1 billion.
As per the outlet, people familiar with the matter stated that the agreement, potentially valued at up to $7 billion, would be the largest acquisition made by ServiceNow to date.
The report indicated that the acquisition could be declared as soon as this week, but could still fall apart. Therefore, Armis and ServiceNow have not responded to a request to comment by CNBC with an immediate response.
Armis informed CNBC about its eventual plans for an IPO that a company that assists businesses in securing and managing their internet-connected devices and safeguarding them against cyber threats, brought up $435 million in a funding round slightly over a month ago.
CEO and Co-Founder Yevgeny Dibrov Armis is targeting for a public listing at the end of 2026 or early 2027, pending “market conditions.”
The fact that Armis has chosen to be acquired instead of waiting to be listed publicly is a usual strategy among startups currently. The IPO markets are still volatile, and most of the startups are opting to stay longer in the private market rather than taking a chance of being muted when they go to the public market.
Armis, which was founded in 2016, said in August that and reached a valuation of over $300 million in annual recurring revenues less than a year after it had achieved over $200 million in ARR.
Its most recent financing round was led by the Goldman Sachs Alternatives growth equity fund, and CapitalG, a venture fund of Alphabet, took part. The previous supporters include Sequoia Capital and Bain Capital Ventures.
