Service Now in April of this year cashed $7.75 billion to purchase Cybersecurity, Armis. This is one of the largest acquisitions in the history of the company and one of the recent cases of the withdrawal of leading start-ups in the Israeli science and technology industry.

At the time of this transaction, the enterprise software plate was under AI-related pressure. Last December, when news of the deal came out, the ServiceNow stock price was once down by 9% that day. Wall Street was concerned that AI agents might weaken the value of traditional business software and that the market had even come up with the term “Saaspocalypse”. In the first four months of 2026, Servicenow stock prices fell by a cumulative 42 per cent.

ServiceNow borrows and buys for security operations

Amit Zavery, Chief Product Officer of Service Now, does not agree with the so-called “SaaS End of Life theory”. He stated that companies continued to meet or exceed their financial targets during periods of market concern. Management judges that instead of being reactive, it would be better to take the opportunity to expand the Platform ' s capacity.

Following the acquisition of Armis, Servicenow integrated cybersecurity, IT asset management and industrial equipment monitoring into the same platform. The company also incorporated Armis, together with another acquisition of Veza, into the new Autonomous Security and Risk business sector and indicated to investors that the portfolio was driving its security business growth.

Armis Focused Enterprise Networking Device Surveillance

The core product of Armis is the monitoring of various types of networking equipment in the enterprise network, including medical equipment, industrial systems and other material network terminals, and the identification of equipment with security risks. With the increase in the number of non-traditional terminals in the business environment, such capacities are becoming an important direction for safe inputs.

After the transaction was completed, the co-founder and CEO Yevgeny Dibrov became the Managing Director of the Servicenow new Armis business module, and another co-founder, Nadir Izrael, became the Vice-President of Product and Engineering Group. The two individuals continue to be responsible for the operation of the original business, but the underlying platform has become a software company with a market value of approximately $180 billion and a large number of business clients.

  • Acquisitions: $7.75 billion in cash
  • Transactions: Completed in April 2026
  • Name of the new department: Autonomous Security and Risk

Founding team zooms in parallel with return on investment

According to reports, Dibrov and Izrael together received about $930 million in this withdrawal. Armis was also supported in the early years by a number of prominent investment institutions. In 2020, the Insight Partners acquired Armis at approximately $1.1 billion, and most of their operations remained independent.

At the time of the Servicenow acquisition, Insight had shares valued at approximately $3.3 billion, with a shareholding ratio of approximately 43 per cent. It also shows that, at the stage of AI remodelling the valuation logic of the software, network security assets can still be acquired at high prices by large software companies.

From the perspective of Servicenow, this transaction is not only a security business expansion, but also a proactive adjustment to the enhanced platform stickyness and product mix when business clients reassess their software expenditures.