Update, 2:40 pm, by Laura Herijgers: Servicenow officially announces the acquisition. Moveworks is acquired for an amount of 2.85 billion dollars.
ServiceNow indicates that it wants to use the qualities of Moveworks to increase the adoption of the agentic AI ServiceNow platform. “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”, said Amit Zavery, president, chief operating officer, and chief product officer at ServiceNow.
Original, 1:27 pm, by Laurens van Aggelen: According to sources familiar with the matter, ServiceNow Inc. is on the verge of acquiring Moveworks, an artificial intelligence company. This acquisition would be the largest in ServiceNow’s history.
Insiders state to Bloomberg that the final details of the deal with California-based Moveworks are being finalized. The official announcement could follow within days. The acquisition could value Moveworks at nearly $3 billion. Although negotiations are advanced, they could still be delayed or even scuttled, according to the sources, who wished to remain anonymous because of the confidential nature of the talks.
Moveworks
Moveworks, founded in 2016, provides AI assistants that help companies handle employee requests. The company has customers such as Unilever Plc, GitHub Inc. and Broadcom Inc. and is backed by investors such as Kleiner Perkins, Lightspeed Venture Partners and Bain Capital Ventures. As recently as 2021, Moveworks was valued at $2.1 billion after a funding round.
ServiceNow, led by CEO Bill McDermott, develops software applications that support companies in organizing and automating their workforce and IT operations. Like many other technology companies, ServiceNow is increasingly integrating generative AI features into its products. Before joining ServiceNow, McDermott was CEO of software giant SAP SE, where he managed several major acquisitions.
Market value
ServiceNow shares have risen more than 12 percent in the past 12 months, giving the company a current market value of about $175 billion. In January, ServiceNow presented its revenue expectations for the fiscal year, which were below expectations. In doing so, the company said it wanted to focus on driving the adoption of new generative AI products rather than directly generating significant revenue from these tools.
The Moveworks acquisition will allow ServiceNow to further strengthen its position in the AI market and expand its offerings of automated solutions.