Shares in ServiceNow (NYSE:NOW) moved lower in pre-market trading on Monday after reports emerged that the company is holding advanced discussions to buy cybersecurity firm Armis in a deal that could be valued at as much as $7 billion.
According to a Bloomberg News report citing people familiar with the situation, an announcement could come within days. If completed, the transaction would be ServiceNow’s largest acquisition to date, prompting investor caution as markets assessed the scale of the potential outlay.
Sources close to the talks said negotiations are well progressed, but stressed that there is no certainty a deal will be finalised. They added that another bidder could still enter the process. The individuals spoke on condition of anonymity as the discussions are not public.
The potential purchase would signal a deeper move by ServiceNow into the cybersecurity space. Armis specialises in asset intelligence technology that enables organisations to discover, monitor and protect connected devices across their networks.
A successful deal would represent a significant strategic step for ServiceNow, expanding its portfolio beyond its core digital workflow and IT service management offerings into the fast-growing cybersecurity market.