2025 saw two of the four top tier OT detection + asset inventory vendors get acquired. First Mitsubishi Electronics acquired Nozomi Networks at a valuation of $950M (read my analysis of the Nozomi acquisition). Then last month ServiceNow announced they will be acquiring Armis for $7.75B, about 5% of ServiceNow’s market cap.
One clear result is there are now only two top tier pure plays in the OT detection + asset inventory space: Claroty and Dragos. Two top tier companies that are solely focused on this OT detection + asset inventory space.
Despite protestations at acquisition that nothing will change with an acquisition, it almost always does, and for good reason. The larger acquirer has many products and sectors competing for their resources. If the acquired product is the star, beating other products and business units in growth and/or profit, AND is in the company’s strategic direction, then it will get resources. If not, it stagnates or even worse fades away.
One unknown is does this open up an opportunity for another company in the OT detection + asset inventory space to join the top tier. My quick, gut reaction says no, but it’s easier in 2026 than it was at the start of 2025.
I don’t have great insight into the Armis acquisition. I was slow, and probably late, to move them into the top tier of this product segment for two reasons. One, they were cloud only and this limited OT sales until recently. And two, OT is an unknown fraction of their business. It could be as little as 10% or as high as 30%, and people may differ on where they draw the OT / IIoT distinction. This makes it hard to compare Nozomi and Armis acquisition prices.
The Armis acquisition will not change ServiceNow’s focus on workflow management and automation. I doubt there will be many head to head competition between Claroty – Dragos – ServiceNow once Armis is absorbed. It more likely would take the shape of improving ServiceNow’s OT asset management and support for OT devices, software, and systems.
I was interested in seeing the ServiceNow’s live demo at the S4x26 Proof Of Concept Pavilion even before the Armis acquisition announcement. They were going to show integration with other OT asset inventory participants in the POC Pavilion. This might make it more interesting to stop by and talk with their top OT people.
Finally, congratulations to the Armis team. A $7.75B exit after raising $1.45B in VC is an impressive win.