Stock Market Update

[BRIEFING.COM] The S&P 500 (+0.3%), Nasdaq Composite (+0.4%), and DJIA (+0.2%) hover at session highs shortly after midday. 

ServiceNow (NOW 152.53, -4.15, -2.65%) announced a big acquisition in the cybersecurity space this morning. ServiceNow will acquire Armis for $7.75 billion in cash. Armis is a leader in cyber exposure management and cyber-physical security. It manages cyber risk across the full attack surface in IT, operational technology (OT), medical devices, and other environments. The acquisition will expand ServiceNow's current security workflow offerings.

The deal could also drive cross-sell and upsell opportunities into ServiceNow's large enterprise customer base. However, ServiceNow shares are trading lower, likely because the acquisition comes at a premium valuation (~23× Armis's current ARR), which raises concerns about near-term dilution and integration risk, particularly given ServiceNow's recent string of acquisitions (Moveworks, Veza) and leverage.