ServiceNow Stock Plummets Amid Reported $7B Armis Acquisition Talks
ServiceNow shares led S&P 500 decliners with an 11% drop Monday as Bloomberg reported advanced talks to acquire IoT security firm Armis for up to $7 billion. The potential deal WOULD mark ServiceNow's largest acquisition to date, granting access to Armis' device security platform.
Investors reacted negatively to the prospective deal size, extending ServiceNow's 25% year-to-date decline. The stock now trades at April 2024 levels. Armis, acquired by Insight Partners for $1.1 billion in 2020, specializes in protecting connected devices across enterprise networks.
Market skepticism mirrors typical reactions to major tech acquisitions, where acquirers often see short-term share pressure. The MOVE highlights growing enterprise demand for IoT security solutions as device networks expand exponentially.
