ServiceNow Says $4 Billion Term Loan Credit Deal Will Help Finance Armis Security Deal
By Stephen Nakrosis
ServiceNow entered a $4 billion term loan credit agreement, with proceeds slated to finance a portion of its acquisition of Armis Security, the company said in a filing.
The loan matures Oct. 16, but the company has the option to extend the maturity date by up to six months. JPMorgan Chase Bank, N.A. acted as administrative agent.
Earlier this week, ServiceNow said it completed the acquisition of cyber exposure management and security group Armis. ServiceNow said Armis provides an AI-powered solution that sees, protects and manages cyber risk.
After the bell Wednesday, ServiceNow reported earnings and said the acquisition was expected to create headwinds to fiscal year 2026 margins, including approximately 125 basis points to second-quarter operating margin.
The company reported first quarter subscription revenue of $3.6 billion, representing 22% growth year-over-year. After the bell, the company's shares were trading lower, dropping about 12% to $89.91. The stock closed the day's regular session at $103.07, gaining almost 3%.
In March, ServiceNow closed its acquisition of Veza, an identity security company.
Write to Stephen Nakrosis at stephen.nakrosis@wsj.com
(END) Dow Jones Newswires
April 22, 2026 18:10 ET (22:10 GMT)
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