ServiceNow will acquire cybersecurity startup Armis in a cash deal valued at $7.75 billion, the company said Tuesday.

Shares fell 1.5%.

The enterprise software company said the deal will bolster its cybersecurity capabilities in the age of artificial intelligence and more than triple its market possibility for security and risk management to over $15 billion.

“In today’s threat landscape,organizations need to know not onyl what is on their network,but who and what is doing,” said ServiceNow CEO Bill McDermott in a statement. “Together, ServiceNow and Armis will provide organizations with a single system of action to proactively manage and remediate cyber risk.”

Armis specializes in asset visibility and security posture management. Its platform discovers and analyzes all assets – managed and unmanaged – on a network, providing insights into potential vulnerabilities and threats. This complements ServiceNow’s existing security operations capabilities.

The acquisition is expected to close in the second quarter of 2024, subject to regulatory approval and customary closing conditions.ServiceNow plans to fund the deal with cash on hand.

Analysts see the deal as a strategic move for ServiceNow, positioning it to capitalize on the growing demand for cybersecurity solutions. The combination of ServiceNow’s workflow automation platform and Armis’s asset visibility will allow customers to respond to threats more quickly and effectively.