ServiceNow Acquires Moveworks for $2.85 Billion to Expand AI Portfolio
ServiceNow has made a significant move in the tech industry by announcing its acquisition of Moveworks, a company specializing in enterprise-focused automation and AI tools. This strategic decision is expected to enhance ServiceNow’s offerings and accelerate the adoption of AI in various business processes.
Details of the Acquisition
On Monday, ServiceNow revealed its agreement to acquire Moveworks for $2.85 billion, a mix of cash and stock. The deal is anticipated to close in the second half of 2025, as reported by Bloomberg.
Valuation and Background
Moveworks was valued at approximately $2.1 billion as of June 2021. The company’s impressive valuation and innovative solutions have garnered attention in the tech space.
Statements from Leadership
ServiceNow President and COO, Amit Zavery, stated, “With the acquisition of Moveworks, ServiceNow will take another giant leap forward in agentic AI-powered business transformation.” He emphasized that the combination of Moveworks’ AI-first experience with ServiceNow’s robust workflow automation will enhance AI adoption across enterprises.
Synergies Between ServiceNow and Moveworks
Zavery highlighted the existing relationship between the two companies, noting their shared customer base and integration of product offerings. This acquisition presents an opportunity for ServiceNow to create a platform that merges its strengths in AI and automation with Moveworks’ AI assistant and enterprise search technology.
About Moveworks
Founded in 2016 by Bhavin Shah, Vaibhav Nivargi, Varun Singh, and Jiang Chen, Moveworks emerged from stealth mode in 2019. The company focuses on automating IT support for enterprise clients and has since broadened its portfolio to include solutions for HR, finance, and facilities management.
Clientele and Funding
Moveworks serves notable clients including Unilever, Instacart, Siemens, and Toyota. Before the acquisition, the company successfully raised over $300 million from investors such as Tiger Global, Iconiq Growth, and Kleiner Perkins, employing more than 500 staff members.
Future Prospects
Shah expressed enthusiasm about the acquisition, stating, “Becoming part of ServiceNow presents an incredible opportunity to accelerate our innovation.” He believes that the partnership will redefine the user experience for employees and customer service teams.
ServiceNow’s AI Strategy
This acquisition aligns with ServiceNow’s strategy to leverage emerging AI technologies. Earlier in January, ServiceNow acquired Cuein, a conversation data analysis platform, to further enhance its data processing capabilities.
According to ServiceNow, its latest AI solutions are seeing unprecedented growth, with nearly 1,000 AI customers reported by December 2024, contributing to an annual contract value nearing $200 million for its “Pro Plus” AI tier.
Conclusion
In its most recent fiscal quarter (Q4 2024), ServiceNow posted $2.96 billion in subscription revenues, a testament to the increasing adoption of AI technologies. This acquisition marks a pivotal moment for both ServiceNow and Moveworks, paving the way for innovative solutions in enterprise automation.
For more insights on AI advancements, visit ServiceNow’s website or check our related articles on AI automation strategies.
