ServiceNow to acquire identity security firm Veza

SANTA CLARA, Calif. - ServiceNow (NYSE:NOW) announced Monday its intent to acquire identity security company Veza, aiming to strengthen its security and risk management capabilities. The tech giant, currently valued at $170.56 billion, continues its strategic expansion amid a 21.05% revenue growth over the last twelve months.

The acquisition will extend ServiceNow’s security portfolio to address identity security, enabling organizations to better control access to critical data, applications, systems, and AI components. Financial terms of the transaction were not disclosed. ServiceNow maintains a solid financial foundation for such strategic moves, with InvestingPro data showing impressive gross profit margins of 78.05% and a "GOOD" overall financial health rating.

Founded in 2020, Veza serves approximately 150 enterprise customers across banking, hospitality, and consumer goods sectors. The company’s technology is built around its patented Access Graph, which maps relationships across human, machine, and AI identities to provide visibility and control over access permissions.

"In the era of agentic AI, every identity – human, AI agent, or machine – is a force for enterprise impact. It’s only when you have continuous visibility into each identity’s permissions that you can trust it," said Amit Zavery, president, chief operating officer, and chief product officer at ServiceNow.

The acquisition comes as organizations face growing challenges managing diverse identities including employees, partners, systems, applications, and increasingly, autonomous AI agents. Veza’s platform is designed to provide a unified dashboard where security teams can identify and remedy overly broad permissions.

Tarun Thakur, CEO of Veza, said, "With ServiceNow, we will help customers embrace AI with greater confidence."

The integration aims to enhance ServiceNow’s AI Control Tower by governing what AI agents can access across enterprises, while adding identity context to ServiceNow’s existing security products including Vulnerability Response and Incident Response.

John Stecher, chief technology officer at Blackstone, a customer of both companies, noted that the combined platform "will provide a context-rich identity governance framework that will be key in the age of agentic AI."

The transaction is subject to customary regulatory approvals and closing conditions, according to the statement based on a press release.

In other recent news, ServiceNow reported strong financial results, with subscription revenue growth and operating margins that surpassed guidance when adjusted for constant currency. The company also experienced significant growth in its current remaining performance obligation (cRPO), with a 20.5% increase, marking its largest beat in over two years. This performance led TD Cowen to raise its price target for ServiceNow to $1,250, maintaining a Buy rating. Similarly, DA Davidson reiterated its Buy rating, highlighting the company’s momentum with its Now Assist and CRM products. BMO Capital, while lowering its price target slightly to $1,150, maintained an Outperform rating due to ServiceNow’s solid September quarter performance.

Additionally, ServiceNow has expanded its strategic partnership with NTT DATA to accelerate AI adoption globally, designating NTT DATA as a strategic AI delivery partner. In another development, ServiceNow and Figma have announced a new integration that allows developers to convert Figma designs into enterprise applications using ServiceNow’s AI platform. This integration reportedly reduces initial UI and data model implementation time by over 80%. These recent developments reflect ServiceNow’s ongoing efforts to enhance its product offerings and strategic partnerships.

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