ServiceNow Acquires Moveworks for $2.85B to Boost AI Capabilities

ServiceNow announced on Monday its plan to acquire Moveworks, a company specializing in AI and automation tools for enterprises, for $2.85 billion in a combination of cash and stock. The acquisition is expected to be finalized in the second half of 2025, according to a report by Bloomberg on Sunday night. Back in June 2021, Moveworks had a valuation of $2.1 billion. Amit Zavery, ServiceNow's president and COO, highlighted the acquisition's significance in a press release, stating, "With the acquisition of Moveworks, ServiceNow will take another giant leap forward in agentic AI-powered business transformation." He emphasized that combining Moveworks' AI-first approach with ServiceNow's AI-driven workflow automation would accelerate AI adoption across enterprises and deliver transformative results for employees and customers. Zavery also noted the strategic fit between the two companies, pointing out their shared customer base and integrated product offerings. He believes that integrating Moveworks into ServiceNow's ecosystem will enable the creation of a platform that merges ServiceNow's agentic AI and automation capabilities with Moveworks' AI assistant and enterprise search technology. Moveworks, founded in 2016 by Bhavin Shah, Vaibhav Nivargi, Varun Singh, and Jiang Chen, emerged from stealth mode in 2019 with a focus on automating high-level IT support for enterprises. Over time, the company expanded its offerings to include solutions for HR, finance, and facilities management. Its client list boasts names like Unilever, Instacart, Siemens, and Toyota. Before the acquisition, Moveworks raised over $300 million from investors such as Tiger Global, Iconiq Growth, and Kleiner Perkins, and currently employs over 500 people. Bhavin Shah, co-founder of Moveworks, expressed enthusiasm about the acquisition, stating, "Moveworks hides the complexity employees face at work by giving them an intuitive, engaging starting place to search and drive action across any enterprise system." He sees joining ServiceNow as a chance to enhance innovation and fulfill their mission through ServiceNow's AI agent-powered platform, ultimately redefining the user experience for employees and customer service teams. This move aligns with ServiceNow's broader strategy to integrate advanced AI technologies. Earlier in January, the company acquired Cuein, an AI-native conversation data analysis platform, to bolster its data processing capabilities. ServiceNow reports that its latest AI solutions are experiencing unprecedented growth, with nearly 1,000 AI customers as of December 2024 and an annual contract value of about $200 million for its "Pro Plus" AI tier. In its most recent fiscal quarter (Q4 2024), ServiceNow, based in Santa Clara, generated $2.96 billion in subscription revenues, partly fueled by increased AI adoption.

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