ServiceNow is reportedly in advanced talks to buy Armis Security. Here's why the prospect isn't exciting for NOW stock investors.

ServiceNow Inc. is in advanced talks to buy Armis, a cybersecurity startup that had been eyeing an initial public offering next year, in a deal that may be valued at as much as $7 billion, people familiar with the situation said.

ServiceNow is looking to acquire cyber exposure management vendor Armis in a deal that could be valued at up to $7 billion, according to a report.

Coming into its potential acquisition, Armis had raised $1.17 billion over seven rounds, according to data from Tracxn, including rounds of $17 million in 2017, $30 million in 2018 and $65 million in 2019, before Insight Partners took a majority stake in 2020.

As platform complexity accelerates with AI adoption and multi-instance sprawl, organizations turn to xtype for technical governance at scaleCOVINA, Calif.--(BUSINESS WIRE)--xtype, the Technical Governance Platform for ServiceNow,