ServiceNow has announced its acquisition of Moveworks, an AI startup, for $2.85 billion. This is ServiceNow’s largest acquisition to date and underscores the company’s commitment to enhancing its AI capabilities. The deal is structured as a combination of cash and stock and is expected to close in the second half of 2025, pending regulatory approvals. This acquisition will integrate Moveworks’ AI-powered solutions into ServiceNow’s platform, improving productivity and automating workflows across various industries.
Moveworks, founded in 2016 and based in Mountain View, California, specializes in AI-driven automation for employee support functions.
The company offers chatbot technology that automates tasks in IT, HR, and facilities management. Moveworks’ technology seamlessly integrates with platforms like ServiceNow, Salesforce’s Slack, and Microsoft’s SharePoint. This has helped the company secure notable clients such as Broadcom, Palo Alto Networks, and Pinterest.
ServiceNow views this acquisition as a key step in its strategy to lead AI-powered business transformation. The company’s leadership believes that combining Moveworks’ advanced AI technology with ServiceNow’s automation platform will significantly boost AI adoption in businesses. However, the announcement has sparked mixed reactions among investors, with ServiceNow‘s stock dropping by 7%.
This decline reflects concerns about the deal’s valuation and its short-term financial impact.
Despite these concerns, analysts see the deal as a strategic move to maintain ServiceNow’s competitive edge. Moveworks has achieved over $100 million in annual recurring revenue and has attracted investment from top venture capital firms. ServiceNow’s acquisition aims to enhance its offerings in key growth areas, including customer relationship management. While challenges such as regulatory hurdles remain, the deal positions ServiceNow to remain at the forefront of AI-driven automation.
Reference:
