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The race to build the security operating system

The race to build the security operating system

Money Moves

Enterprise software giants are spending tens of billions to become the single platform controlling cybersecurity across IT, cloud, and critical infrastructure

December 23rd, 2025: ServiceNow Announces $7.75B Armis Acquisition

Overview

ServiceNow just agreed to pay $7.75 billion in cash for Armis, a cybersecurity startup that tracks vulnerabilities across hospital medical devices, factory equipment, and corporate networks. It's ServiceNow's largest acquisition ever—and its third billion-dollar security buy in 2025 alone. CEO Bill McDermott calls it building an "AI control tower" for cybersecurity, while Wall Street calls it a land grab.

The ServiceNow deal caps a frenzied 21 months of enterprise acquisitions. In that time, companies spent over $90 billion buying cybersecurity firms: Google paid $32 billion for Wiz, Palo Alto grabbed CyberArk for $25 billion, and Cisco swallowed Splunk for $28 billion. Companies with 83 security tools from 29 vendors are desperate to consolidate, and the winners will control the operating system layer for enterprise security.

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Key Indicators

$90B+
Spent on cybersecurity M&A in 21 months
Cisco-Splunk ($28B), Google-Wiz ($32B), Palo Alto-CyberArk ($25B), ServiceNow's 2025 spree ($11.6B)
83
Average security tools per enterprise
From 29 different vendors—driving 70% of organizations to pursue consolidation
3
Billion-dollar acquisitions by ServiceNow in 2025
Moveworks ($2.85B), Veza ($1B), Armis ($7.75B)—transforming from IT ticketing to security platform
50%+
Armis revenue growth rate
$340M annual recurring revenue, serving 35% of Fortune 100, grew from $200M ARR in 18 months
3x
ServiceNow's security market expansion
CFO projects Armis deal will triple addressable market for security and risk solutions

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People Involved

Organizations Involved

Timeline

March 2024 December 2025

15 events Latest: December 23rd, 2025 · 5 months ago Showing 8 of 15
Tap a bar to jump to that date
  1. ServiceNow Announces $7.75B Armis Acquisition

    Latest Acquisition

    All-cash deal for asset visibility platform, ServiceNow's largest acquisition ever. Expected close second-half 2026.

  2. Germany Approves Palo Alto-CyberArk Merger

    Regulatory Approval

    German competition authority clears $25 billion acquisition after in-depth review finds no competition concerns, removing regulatory uncertainty in major European market.

  3. ServiceNow Completes Moveworks Acquisition

    Acquisition Closed

    ServiceNow closes $2.85 billion Moveworks acquisition, combining agentic AI workflows with Moveworks' enterprise search and Reasoning Engine across 5.5 million employee users.

  4. Palo Alto Files for Turkish Regulatory Approval

    Regulatory Filing

    Palo Alto Networks requests clearance from Turkish competition authority for CyberArk acquisition, adding to ongoing multi-jurisdiction regulatory review process.

  5. ServiceNow Acquires Veza for ~$1B

    Acquisition

    Identity security firm Veza adds privileged access capabilities to ServiceNow's security portfolio.

  6. CyberArk Shareholders Approve Palo Alto Acquisition

    Shareholder Vote

    99.8% of CyberArk shareholders vote to approve $25 billion Palo Alto Networks acquisition at special meeting, clearing major hurdle for deal completion.

  7. Armis Closes $435M Pre-IPO Round at $6.1B

    Funding

    Goldman Sachs and CapitalG lead round as Armis prepares for 2026 IPO with $340M ARR growing 50%+.

  8. Palo Alto Confirms $25B CyberArk Deal

    Acquisition

    Second-largest cybersecurity acquisition, CyberArk shareholders get $45 cash plus 2.2 shares per share.

  9. Palo Alto-CyberArk Talks Surface

    Deal Rumors

    Reports emerge of $20B+ acquisition discussions between Palo Alto Networks and identity security firm CyberArk.

  10. Google Announces $32B Wiz Acquisition

    Acquisition

    Largest cybersecurity deal ever, Google's biggest purchase outright. DOJ clears merger after antitrust review.

  11. ServiceNow Acquires Moveworks for $2.85B

    Acquisition

    ServiceNow's first billion-dollar+ security acquisition, adding AI assistant and agentic reasoning capabilities.

  12. Armis Raises $200M at $4.2B Valuation

    Funding

    General Catalyst and Alkeon Capital lead Series D, surpassing $200M annual recurring revenue.

  13. Mastercard Buys Recorded Future for $2.65B

    Acquisition

    Financial services firm acquires threat intelligence company, expanding non-security buyers into cybersecurity.

  14. Wiz Rejects Google's $23B Offer

    Deal Rejected

    Cloud security startup Wiz turns down Google acquisition citing antitrust concerns under Biden administration.

  15. Cisco Completes $28B Splunk Acquisition

    Acquisition

    Cisco closes massive purchase of security analytics platform Splunk, signaling start of consolidation wave.

Historical Context

3 moments from history that rhyme with this story — and how they unfolded.

1993-2000

Cisco's Acquisition Binge (1993-2000)

Cisco executed over 70 acquisitions during the dot-com boom to build a comprehensive networking platform, spending billions to add capabilities rather than building organically. The strategy made Cisco the most valuable company in the world by March 2000 at $555 billion market cap. Then the dot-com crash hit, integration challenges surfaced, and Cisco's value plummeted 86% in two years.

Then

Cisco dominated networking equipment but faced massive write-downs and integration nightmares post-crash.

Now

Cisco remained a networking leader but never regained its growth trajectory or platform dominance aspirations.

Why this matters now

ServiceNow's $11.6B acquisition spree in 2025 mirrors Cisco's platform-building strategy—betting that breadth beats depth and that integration challenges are manageable. History suggests otherwise.

2011-2016

Salesforce Platform Consolidation (2011-2016)

Salesforce acquired ExactTarget ($2.5B), Demandware ($2.8B), and dozens of smaller companies to transform from CRM into a complete marketing and commerce cloud platform. The strategy worked—Salesforce grew from $2B to $8B in revenue by expanding beyond its core product into adjacent enterprise workflows.

Then

Acquisitions successfully expanded Salesforce's addressable market and deepened customer relationships.

Now

Salesforce became a $30B+ revenue platform, validating platform consolidation for enterprise software.

Why this matters now

ServiceNow is following Salesforce's playbook, expanding from IT service management into security and business workflows. The question: can ServiceNow execute integrations as effectively as Salesforce did?

2010-2019

Symantec's Failed Security Consolidation (2010-2019)

Symantec acquired VeriSign ($1.28B), Clearwell ($390M), and dozens of security companies to build a unified platform protecting endpoints, networks, and data. The strategy collapsed under integration complexity and product bloat. Customers complained about buggy software and poor support. Symantec's market share eroded as nimble startups delivered better point solutions.

Then

Revenue grew through acquisitions but profitability and customer satisfaction declined sharply.

Now

Symantec split into two companies in 2019, selling enterprise security to Broadcom for $10.7B at a fraction of peak value.

Why this matters now

A cautionary tale for ServiceNow and Palo Alto: buying security companies is easy, integrating them into a coherent platform that customers actually want is brutally hard.

Sources

(25)