The $8 Billion Deal That Rescued ServiceNow From the 'SaaSpocalypse'

In April 2026, ServiceNow acquired Armis, the company founded by Yevgeny Dibrov, for $7.75 billion in cash. Armis is a platform that monitors any device connected to a corporate network — including medical equipment and industrial systems — and flags those that pose security risks. The deal is the largest acquisition in ServiceNow's history and the second-largest pure startup exit in Israeli tech, trailing only Google's $32 billion purchase of Wiz in 2025, a company also founded by Assaf Rappaport.

Dibrov and his co-founder Nadir Izrael split roughly $930 million from the deal. Dibrov now serves as general manager of the newly formed Armis unit within ServiceNow, while Izrael became group vice president of product and engineering — both continuing to run the business they built nearly a decade ago, now nested inside a company with a $180 billion market cap and thousands of enterprise customers.

When news of the deal first leaked via Bloomberg, ServiceNow's stock dropped 9% in a single day — a reflection of growing fears that AI agents would render traditional enterprise software obsolete. By spring, Wall Street had dubbed the phenomenon the 'SaaSpocalypse,' and ServiceNow shares had plunged as much as 42% in the first four months of 2026, worse even than Salesforce.

But ServiceNow's chief product officer, Amit Zavery, doesn't buy into the panic. 'We never really believed in this SaaS apocalypse,' he told Fortune, noting that the company hit or exceeded its financial targets every quarter even at the height of the scare. The Armis acquisition let ServiceNow unify cybersecurity, IT asset management and industrial device monitoring on a single platform — the division now operates under the name 'Autonomous Security and Risk.'

The results were hard to miss: ServiceNow's stock climbed 41% in the following months — its best run since its 2012 IPO. After second-quarter results beat expectations, shares rose another 8% in late July, with revenue hitting $3.99 billion, up 24%. The company's annual contract value for AI products topped $1 billion. 'It certainly helped,' Zavery said when asked whether the Armis deal helped ServiceNow dodge the SaaSpocalypse, though he stressed it was part of a broader strategy rather than the sole factor.