ServiceNow M&A Opportunity Despite High Valuation Concerns

1 day ago

Paul Sweeney

"Well, we got to take a look at Service Now, Paul, because it's M&A Monday. Bloomberg news exclusive reporting the company is in advanced talks to buy Armis which is a cyber security startup and those shares now down though so ticker N O shares are down more than 10% now so extending some of those opening declines. Bloomberg has weighed in on this, saying that for now Service Now would help its ID asset management practice, but they're just questioning that deal price — $7 billion to gain 300 million in annualized recurring revenue, which to them seems expensive. I don't know the multiples here, but I mean, it's a fast growing business and, you know, you got to put this capital to work somewhere. I don't have a problem with it. Let's go."

The discussion highlights ServiceNow's advanced discussions to acquire the cybersecurity startup Armis for $7 billion in exchange for 300 million in annualized recurring revenue. Despite a drop of over 10% in share price during the announcement, the speaker expresses a mild bullish stance, emphasizing the company's fast growth and the need to deploy capital effectively.

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