ServiceNow is set to acquire AI firm Moveworks in a deal valued at $2.85 billion in cash and stock. This acquisition represents the largest in ServiceNow’s history and comes at a time when enterprises are investing heavily in artificial intelligence to optimize their IT operations.
The rise of generative AI has prompted companies like ServiceNow and Salesforce to enhance their software offerings by integrating advanced AI-driven capabilities, ensuring they remain competitive in the rapidly evolving enterprise software market, Reuters news report said.
Moveworks specializes in agentic AI solutions designed to assist clients by automating and resolving IT and HR-related tasks through conversational AI. The company serves major clients such as chipmaker Broadcom, cybersecurity firm Palo Alto Networks, and social media giant Pinterest.
Moveworks’ workforce of over 500 employees will transition to ServiceNow. ServiceNow’s Chief Financial Officer, Gina Mastantuono, stated that there are currently no plans for layoffs related to the acquisition, signaling a smooth integration of Moveworks into ServiceNow’s operations.
While ServiceNow offers “Now Assist,” an AI-powered chatbot solution, Moveworks’ technology brings a complementary approach. Unlike ServiceNow’s in-house AI assistant, Moveworks focuses on AI-driven issue resolution by understanding and addressing employee requests within enterprise environments.
Its AI-powered chatbot is designed to integrate seamlessly with platforms such as ServiceNow, Salesforce’s Slack, and Microsoft’s SharePoint, making it a valuable addition to ServiceNow’s AI-driven service management suite.
ServiceNow has positioned itself as a leader in enterprise AI by embedding artificial intelligence across its entire service management platform. The acquisition of Moveworks aligns with the company’s broader vision of using AI to improve workflow automation and operational efficiency for businesses.
Despite the strategic importance of this deal, ServiceNow’s stock experienced a 7 percent decline following the announcement. However, the company remains confident in the acquisition’s long-term benefits, and Mastantuono noted that they do not anticipate regulatory challenges that could hinder the deal’s completion. The transaction is expected to close in the second half of 2025.
Moveworks, a privately held company, previously raised $200 million in a Series C funding round in 2021, bringing its total funding to $315 million. At the time, the company was valued at $2.1 billion. The funding round was led by prominent investment firms, including Tiger Global and Alkeon Capital, with participation from existing investors such as Lightspeed Venture Partners, Sapphire Ventures, Bain Capital, ICONIQ Growth, and Kleiner Perkins.
By acquiring Moveworks, ServiceNow aims to strengthen its position as a dominant player in AI-powered enterprise solutions. The deal underscores the increasing demand for AI-driven automation in the workplace, with businesses prioritizing intelligent solutions that can reduce workload and enhance efficiency. As generative AI continues to shape the future of enterprise software, ServiceNow’s acquisition of Moveworks highlights its commitment to staying ahead in the race to deliver cutting-edge AI solutions for business automation.
InfotechLead.com News Desk
