ServiceNow to enhance CRM with Logik.ai acquisition

Published 03/04/2025, 13:38
ServiceNow to enhance CRM with Logik.ai acquisition

SANTA CLARA, Calif. - ServiceNow (NYSE: NOW), a $169.75 billion market cap leader in digital workflow solutions with impressive gross profit margins of 79.18%, announced its intent to acquire Logik.ai, a company at the forefront of AI-powered Configure, Price, Quote (CPQ) technology. According to InvestingPro data, ServiceNow maintains a strong financial health rating, positioning it well for strategic acquisitions. This move aims to bolster ServiceNow’s Customer Relationship Management (CRM) capabilities, particularly in Sales and Order Management (SOM). The acquisition is expected to streamline sales processes and enhance efficiency for sales organizations.

Logik.ai’s innovative CPQ solution integrates AI to simplify and accelerate the transaction management cycle. Its advanced rules engine is designed to address the complexities involved in sales, especially in sectors where precision and agility are paramount, such as manufacturing and high-tech industries.

ServiceNow’s CRM & Industry Workflows, which is among the company’s fastest-growing businesses, will be complemented by Logik.ai’s technology. This combination is anticipated to drive new levels of sales and commerce performance for customers.

John Ball, EVP and GM of CRM & Industry Workflows at ServiceNow, emphasized that the acquisition will deliver a fundamentally different approach to CRM and CPQ offerings, addressing real pain points in end-to-end customer experiences.

Logik.ai’s CEO, Christopher Shutts, expressed confidence that the integration with ServiceNow’s AI platform will provide a transformative solution for the full sales lifecycle, enhancing simplicity and scalability across CRM processes.

The acquisition is positioned as a natural progression in ServiceNow’s strategy, building on its strengths in connecting functional teams and simplifying workflows. It also complements ServiceNow’s recent Yokohama platform release, which introduced new CRM capabilities such as self-service commerce portals and AI agents tailored for CRM use cases.

ServiceNow has been innovating in customer service and support since 2016, with its platform connecting people, data, and systems to deliver seamless customer and sales experiences.

The transaction is subject to customary closing conditions and regulatory approvals. The details of the acquisition were not disclosed in the press release statement. For comprehensive analysis of ServiceNow’s financial strength and valuation metrics, including detailed Fair Value calculations and peer comparisons, investors can access the full InvestingPro Research Report, available as part of the platform’s coverage of 1,400+ top US stocks.

In other recent news, ServiceNow Inc reported its Q4 2024 earnings, showcasing a 94% year-over-year increase in quarterly revenue, reaching $10.9 million. The company also reported a 420% increase in EBITDA, reflecting strong operational performance. ServiceNow maintained a gross profit margin of 52%, emphasizing its robust financial health. The company highlighted strategic partnerships with major tech firms, including Google and Microsoft, as a key aspect of its growth strategy. Analysts from various firms have noted these partnerships as beneficial for ServiceNow’s market positioning. Furthermore, ServiceNow’s CEO, Sandeep Madhurita, emphasized the company’s successful transformation into a profitable entity. ServiceNow aims for a $50 million revenue run rate and a $10 million EBITDA run rate, focusing on account integration and commercial capabilities. The company has no plans for capital raises, indicating confidence in its financial stability.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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