(Bloomberg) — ServiceNow Inc. has agreed to buy artificial intelligence firm Moveworks for $2.85 billion as part of its push into AI tools that can complete tasks without human supervision.
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The acquisition, ServiceNow’s largest yet, was announced in a statement Monday that confirmed an earlier Bloomberg News report. The cash-and-stock deal is expected to close in the second half of 2025, SerivceNow said in the statement.
ServiceNow shares dropped as much as 7.4% trading on Monday. The stock was down 6.8% at 1:12 p.m. in New York, giving the company a market value of about $163 billion.
Created in 2016, Moveworks provides companies with AI assistants to deal with employee requests. Its technology is used by companies including Unilever Plc, GitHub Inc. and Broadcom Inc., according to its website. Moveworks has received backing from investors including Kleiner Perkins, Lightspeed Venture Partners, Bain Capital Ventures, Alkeon Capital Management and Iconiq Growth. The company was valued at $2.1 billion in a 2021 funding round.
The majority of Moveworks’ customer deployments already use ServiceNow, the company said. Initial integration between the companies will focus on offering an AI-powered self service tool for customers.
Led by Chief Executive Officer Bill McDermott, ServiceNow makes applications that help firms organize and automate their personnel and information technology operations. Like many of its peers, the Santa Clara, California-based company has been baking generative AI features into its products.
“With the acquisition of Moveworks, ServiceNow will take another giant leap forward in agentic AI-powered business transformation,” Amit Zavery, president, chief operating officer and chief product officer of ServiceNow, said in Monday’s statement.
In a note on Monday, Bloomberg Intelligence analysts Anurag Rana and Andrew Girard wrote that the Moveworks deal could help ServiceNow sustain its strong organic sales growth versus large cloud-software peers.
“We expect its positioning in process optimization to lead to more demand stability vs. peers this year,” Rana and Girard wrote. “ServiceNow’s solid performance through uncertain economic conditions reinforces our expectation that the company could exceed $15 billion in subscription revenue by 2026.”
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