Software company ServiceNow is in advanced talks to buy cybersecurity startup Armis, which was last valued at $6.1 billion, Bloomberg reported.Â
The deal, which could reach $7 billion in value, would be ServiceNow's largest acquisition, the outlet said, citing people familiar with the situation who asked not to be identified because the talks are private.Â
The acquisition could be announced as soon as this week, but could still fall apart, according to the report.Â
Armis and ServiceNow did not immediately return a CNBC request for comment.
Armis, which helps companies secure and manage internet-connected devices and protect them against cyber threats, raised $435 million in a funding round just over a month ago and told CNBC about its eventual plans for an IPO.
CEO and co-founder Yevgeny Dibrov said Armis was aiming for a public listing at the end of 2026 or early 2027, pending "market conditions."Â
Armis's decision to be acquired rather than wait for a public listing is a common path for startups at the moment. The IPO markets remain choppy and many startups are choosing to remain private for longer instead of risking a muted debut on the public markets.Â
Founded in 2016, Armis said in August it had surpassed $300 million in annual recurring revenues, a milestone it achieved less than a year after reaching $200 million in ARR.
Its latest funding round was led by Goldman Sachs Alternatives' growth equity fund, with participation from CapitalG, a venture arm of Alphabet. Previous backers have included Sequoia Capital and Bain Capital Ventures.