In a landmark move to strengthen its position in the rapidly evolving artificial intelligence landscape, ServiceNow, a leading provider of digital workflow solutions, has announced its acquisition of Moveworks, an AI startup, for $2.85 billion.
The deal, revealed on Monday, marks the largest acquisition in ServiceNow’s history and underscores the growing importance of AI-driven automation in enterprise operations.
The transaction, structured as a combination of cash and stock, is expected to close in the second half of 2025, pending regulatory approvals and customary closing conditions.
With this acquisition, ServiceNow aims to bolster its agentic AI offerings, integrating Moveworks’ advanced AI assistant and enterprise search technology into its platform to enhance productivity and streamline workflows across industries.
Moveworks Brings Proven AI Expertise to the Table
Moveworks, founded in 2016 and based in Mountain View, California, specializes in AI-powered solutions that automate employee support functions, such as IT, HR, and facilities management.
Its chatbot technology, which integrates seamlessly with platforms like ServiceNow, Salesforce’s Slack, and Microsoft’s SharePoint, has earned it a prestigious client list, including Broadcom, Palo Alto Networks, and Pinterest.
The company, which employs over 500 people, was valued at $2.1 billion following a $200 million Series C funding round in 2021, bringing its total funding to $315 million.
ServiceNow’s leadership sees the acquisition as a pivotal step in its mission to lead the charge in AI-powered business transformation.
“With the acquisition of Moveworks, ServiceNow will take another giant leap forward in agentic AI-powered business transformation,” said Amit Zavery, president, chief operating officer, and chief product officer at ServiceNow.
“Moveworks’ talented team and elegant AI-first experience, combined with ServiceNow’s powerful AI-driven workflow automation, will supercharge enterprise-wide AI adoption and deliver game-changing outcomes for employees and their customers.”
The deal comes at a time when enterprises are increasingly investing in AI to optimize IT operations and improve employee experiences.
The rapid rise of generative AI has pushed companies like ServiceNow and its competitors, such as Salesforce, to enhance their offerings through strategic acquisitions.
By incorporating Moveworks’ technology, ServiceNow aims to expand its influence into key growth areas, including customer relationship management (CRM), where AI-driven solutions are poised to redefine how businesses engage with their clients.
Despite the enthusiasm from ServiceNow’s leadership, the announcement triggered a mixed response from investors.
Shares of the Santa Clara, California-based company dropped approximately 7% on Monday, reflecting potential skepticism about the deal’s valuation and its near-term financial impact.
With a current market value of around $163 billion, ServiceNow remains a heavyweight in the cloud software sector, but the lengthy timeline to the deal’s closure introduces some uncertainty.
For Moveworks, the acquisition represents a significant milestone. The company has grown steadily since its inception, achieving over $100 million in annual recurring revenue and attracting backing from prominent investors like Kleiner Perkins, Lightspeed Venture Partners, and Bain Capital Ventures. Its AI assistants, designed to understand and resolve employee requests through natural language processing, have already been widely adopted by Fortune 500 and Global 2000 companies, many of which are existing ServiceNow customers.
Analysts view the acquisition as a strategic fit that could help ServiceNow maintain its competitive edge in a fast-evolving market.
“The Moveworks deal could help ServiceNow sustain its strong organic sales growth versus large cloud-software peers,” wrote Bloomberg Intelligence analysts Anurag Rana and Andrew Girard.
“ServiceNow’s solid performance through uncertain economic conditions reinforces our expectation that the company could exceed $15 billion in subscription revenue by 2026.”
As the integration of AI continues to reshape the enterprise software landscape, ServiceNow’s $2.85 billion bet on Moveworks signals a bold commitment to staying ahead of the curve.
While challenges such as regulatory hurdles and integration risks remain, the combined strengths of these two innovators could set a new standard for AI-driven automation, delivering enhanced value to businesses worldwide.
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