ServiceNow will acquire cybersecurity startup Armis in a cash deal valued at $7.75 billion, the company said Tuesday.
The enterprise software company said the deal will bolster its cybersecurity capabilities in the age of artificial intelligence and more than triple its market opportunity for security and risk solutions.
"This is about making a strategic move to accelerate growth, and we see the opportunity for our customers," CEO Bill McDermott told CNBC's "Squawk on the Street" on Tuesday. "In this AI world, especially with the agents, you're going to need to protect these enterprises [because] every intrusion is a multi-million dollar problem."
ServiceNow said the deal is expected to close in the second half of next year, financed by a combination of cash and debt.
The company has been on an acquisition spree in 2025 as it sought to accelerate growth, McDermott said.
ServiceNow announced a deal for AI agent platform Moveworks for $2.85 billion in March, and at the beginning of December, said it would acquire identity security platform Veza.
"ServiceNow will have the only AI control tower that drives workflow, action and business outcomes across all of these environments," McDermott added.