ServiceNow to acquire Moveworks for $2.85 billion

SANTA CLARA, Calif. - ServiceNow (NYSE: NOW), a leader in AI-driven business transformation with a market capitalization of $175.23 billion, has announced its plans to acquire AI company Moveworks in a definitive agreement valued at $2.85 billion. The acquisition aims to merge ServiceNow’s agentic AI and automation capabilities with Moveworks’ AI assistant and enterprise search technology, potentially revolutionizing employee engagement and productivity. According to InvestingPro analysis, ServiceNow maintains impressive gross profit margins of 79.18%, positioning it strongly for this strategic expansion.

ServiceNow’s AI solutions have seen rapid growth, with nearly 1,000 AI customers and over $200 million in annual contract value for its Pro Plus AI solution as of Dec. 31, 2024. The company’s overall revenue growth stands at 22.44% over the last twelve months, reaching $10.98 billion. Moveworks, recognized for its AI expertise, has also experienced significant adoption among Fortune 500 and Global 2000 companies.

The collaboration between the two companies is expected to drive further utilization of ServiceNow’s AI platform across various sectors, including CRM. Moveworks’ technology, which simplifies employee interactions with enterprise systems, is anticipated to enhance ServiceNow’s AI-driven workflow automation, aiming to facilitate widespread enterprise AI adoption.

Amit Zavery, president, chief operating officer, and chief product officer at ServiceNow, highlighted the transformative potential of the acquisition, stating that the combination of Moveworks’ AI-first experience with ServiceNow’s platform will "supercharge enterprise-wide AI adoption."

The transaction, subject to regulatory approvals and closing conditions, is expected to close in the second half of 2025. It is payable in a mix of cash and stock, with J.P. Morgan Securities LLC and Tidal Partners LLC advising ServiceNow.

Moveworks’ AI assistant has been integrated into a variety of business functions, such as sales, CRM, finance, and HR, demonstrating its utility in accelerating the sales cycle and improving customer service interactions. The acquisition also aligns with ServiceNow’s strategy of incorporating AI into its platform to automate complex workflows across different departments.

This strategic move positions ServiceNow to capitalize on the growing market for AI-powered business solutions, with plans to further integrate Moveworks’ technology into its offerings. The combined capabilities of both companies are expected to create a seamless self-service experience for employees and enhance customer interactions.

ServiceNow emphasizes that the forward-looking statements in the press release are subject to risks and uncertainties and should not be taken as guarantees of future performance or results. This news is based on a press release statement from ServiceNow.

In other recent news, ServiceNow reported its Q4 2024 earnings, surpassing EPS forecasts with an actual EPS of $3.67, slightly above the predicted $3.65, while revenue met expectations at $2.96 billion. Despite these results, the stock experienced a significant decline in after-hours trading. Subscription revenue saw a 21% year-over-year growth, with a 98% renewal rate indicating strong customer retention. In another development, ServiceNow has amended its company bylaws, introducing a new forum selection clause and revising stockholder action procedures at annual meetings. Additionally, ServiceNow launched its Government Transformation Suite, designed to enhance efficiency for U.S. federal agencies, with partnerships from Accenture Federal and Intact supporting its implementation. Analysts have been active, with Erste Group downgrading ServiceNow’s stock to Hold due to valuation concerns, while Citi maintained a Buy rating but slightly lowered its price target to $1,426. These developments reflect ServiceNow’s ongoing strategic moves and market evaluations.

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