Software firm ServiceNow is in late discussions to acquire cybersecurity firm Armis, which was previously valued at $6.1 billion, as per reports.

The agreement, potentially valued at $7 billion, would represent ServiceNow’s biggest acquisition, according to reports. The deal might be revealed as early as this week, but it could also potentially collapse, based on the report.

Armis, a firm that assists organizations in securing and managing internet-connected devices while safeguarding them from cyber threats, secured $435 million in a funding round slightly more than a month ago and informed CNBC about its future intentions for an IPO.

CEO and co-founder Yevgeny Dibrov stated that Armis plans to pursue a public listing by the end of 2026 or the start of 2027, depending on “market conditions.”

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Armis's choice to be bought instead of awaiting a public listing is a typical route for startups currently. The IPO market is still unstable, leading many startups to opt for staying private longer rather than facing a subdued launch on public markets.

Established in 2016, Armis announced in August that it exceeded $300 million in annual recurring revenues, a milestone it reached less than a year after achieving $200 million in ARR.

Its latest funding round was led by Goldman Sachs Alternatives’ growth equity fund, with involvement from CapitalG, a venture division of Alphabet. Past supporters have included Sequoia Capital and Bain Capital Ventures.

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Armis secured $200 million in a funding round in October 2024 with General Catalyst and Alkeon Capital. Past supporters have featured Sequoia Capital and Bain Capital Ventures. In July, Armis also secured $100 million through a secondary offering.

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Dibrov mentioned that Armis intends to pursue an IPO by late 2026 or early 2027, although he indicated he's not hurrying and is observing market conditions. He stated that the main objective of the company is to reach $1 billion in yearly recurring revenue.