-43%

est. 2Y upside i

Cybersecurity

Rank

#3344

Sector

Cybersecurity

Est. Liquidity

~1Y

Data Quality

Data: High

Armis has been acquired by ServiceNow for $7.75 billion, with the deal expected to close in H2 2026.

Last updated: March 10, 2026

Bull (35%)+50%

The acquisition by ServiceNow closes smoothly and Armis integrates exceptionally well, significantly boosting ServiceNow's security offerings and driving substantial cross-sell opportunities. Armis's contribution to ServiceNow's value effectively grows to ~$11.6B, and ServiceNow's stock performs strongly, leading to a 50% upside from the acquisition price.

Base (50%)+10%

The acquisition by ServiceNow closes as planned, and Armis integrates reasonably well, meeting expectations for its contribution to ServiceNow's security portfolio. ServiceNow's stock sees moderate growth, resulting in a 10% upside from the $7.75B acquisition valuation.

Bear (15%)-30%

The acquisition faces unexpected integration challenges or regulatory delays, Armis's growth slows within ServiceNow, or ServiceNow's overall stock underperforms significantly. This leads to a 30% effective reduction in the value of the converted equity from the $7.75B acquisition price, down to ~$5.4B.

Est. time to liquidity~0.5 years

Preference Stack Risk

high

Funding Intensity

19%

Investors contributed $1.5B, representing a meaningful preference stack (19.4% of the M&A valuation). However, the $7.75B acquisition price significantly exceeded this, mitigating direct impact on common shareholders from preferences at exit.

Dilution Risk

low

As Armis is being acquired by ServiceNow, future dilution risk from private funding rounds is eliminated; equity will be subject to ServiceNow's overall public equity plans post-closing.

Secondary Liquidity

active

Upon the expected closing of the acquisition in H2 2026, equity will convert to ServiceNow (NOW) stock, which is actively traded on the public market.

Questions to Ask at the Interview

Strategic questions based on Armis's data — designed to show you've done your homework.

  • 1

    “How is Armis's integration with ServiceNow's existing security and workflow offerings progressing, and what are the key strategic priorities for the combined entity in the next 12-24 months?”

  • 2

    “Given Armis's strong growth prior to the acquisition, what are the specific strategies to maintain and accelerate this growth rate now that it's part of a larger organization like ServiceNow, particularly in leveraging ServiceNow's customer base?”

  • 3

    “Considering the acquisition is expected to close in the second half of 2026, how should I think about the vesting schedule and the long-term value of ServiceNow equity granted as part of this offer, and what are the potential implications of any earn-out structures?”

Community

Valuation Sentiment

Our model estimates -43% upside. What do you think?

Anonymous. Do not share material non-public information.

Community Discussion

Comments are reviewed before they appear publicly.

0/2000

Loading comments...

Disclaimer: This analysis is AI-generated and does not constitute financial or career advice. Always conduct your own due diligence.