(Bloomberg) – Servicenow Inc. has agreed to buy artificial intelligence company Moveworks for $ 2.85 billion as part of his push in AI tools that can complete tasks without human supervision.
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The acquisition, the largest so far from ServiceNow, was announced on Monday in a statement that confirmed an earlier Bloomberg News report. The deal of the cash-and-stock is expected to close in the second half of 2025, Serivcenow said in the statement.
ServiceNow shares fell no less than 7.4% trade on Monday. The share fell by 6.8% at 1:12 pm in New York, giving the company a market value of around $ 163 billion.
Moveworks was founded in 2016 and offers companies AI assistants to deal with employee requests. The technology is used by companies such as Unilever PLC, Github Inc. and Broadcom Inc., according to her website. Moveworks has received support from investors, including smaller Perkins, Lightspeed Venture Partners, Bain Capital Ventures, Alkeon Capital Management and Iconiq Growth. The company was appreciated at $ 2.1 billion in a financing round of 2021.
The majority of MoveWorks customer implementations are already using Serviceenow, the company said. The first integration between the companies will focus on offering an AI-driven self-service tool for customers.
Under the leadership of Chief Executive Officer Bill McDermott, SERVICENOW requests that help companies organize and automate their personnel and information technology activities. Like many of his colleagues, the company established in Santa Clara, California has baked generative AI functions in its products.
“With the acquisition of MoveWorks, ServiceNow will take another huge leap forward in agent AI-driven business transformation,” said Amit Zavery, president, Chief Operating Officer and Chief Product Officer of Monday, in Monday’s statement.
In a memorandum on Monday, Bloomberg inlaying analysts Anurag Rana and Andrew Girard wrote that the MoveWorks-Deal Servicenow could help to maintain strong organic revenue growth compared to large cloud software colleagues.
“We expect that positioning in process optimization this year will lead to more demand stability versus colleagues,” Rana and Girard wrote. “The solid performance of ServiceNow due to uncertain economic conditions reinforces our expectation that by 2026 the company could exceed more than $ 15 billion in subscription income.”
