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ServiceNow expands AI capabilities with $2.9B acquisition

Mar, 12, 2025 Hi-network.com

ServiceNow has struck a significant deal, acquiring AI firm Moveworks for$2.85 billion in cash and stock, marking its largest-ever acquisition. This move comes as companies are increasingly investing in generative AI to streamline operations. ServiceNow, which is based in Santa Clara, California, US, plans to integrate Moveworks' AI technology into its own platform, further enhancing its IT operations offerings.

Moveworks, known for its AI solutions that help resolve employee issues through chat, has a strong customer base, including companies like Broadcom, Palo Alto Networks, and Pinterest. The deal will bring more than 500 employees from Moveworks into ServiceNow, with no layoffs anticipated.

Despite the deal's size, ServiceNow does not expect regulatory challenges to hinder the transaction, which is expected to close in the second half of 2025. Following the announcement, ServiceNow's shares saw a 7% dip. Moveworks had previously raised$315 million, reaching a valuation of$2.1 billion before this acquisition.

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