ServiceNow plans to raise approximately $4 billion through a new bond offering. The financing supports the $7.75 billion acquisition of cybersecurity firm Armis Security. This offering will likely refinance a $4 billion bridge loan used for the Armis deal.
Barclays, Citigroup, and JPMorgan Chase are advising on the transaction. The sale occurs as investors take a more critical view of software providers in the AI market.
Analysts maintain a neutral sentiment toward the leveraging event. The move increases company debt to provide financial flexibility for growth initiatives.