- ServiceNow‘s $2.85 billion acquisition of Moveworks represents the company’s largest acquisition to date and a strategic move to strengthen its position in the AI-powered business transformation market, despite causing a 4.88% drop in ServiceNow’s stock to $809.15.
- While ServiceNow (NOW) has focused on integrating AI throughout its entire service management platform, Moveworks has specialized in AI chatbot solutions for resolving employee issues, with clients including Broadcom (AVGO), Palo Alto Networks (PANW), and Pinterest (PINS).
- The acquisition, expected to close in the second half of 2025, combines Moveworks’ $2.1 billion valuation and AI-first approach with ServiceNow’s workflow automation capabilities to accelerate enterprise-wide AI adoption.
ServiceNow Inc. (NOW) is making waves in the enterprise AI landscape with its announcement to acquire artificial intelligence firm Moveworks for $2.85 billion, marking the company’s largest acquisition to date. The cash-and-stock deal, expected to close in the second half of 2025, represents a strategic move to strengthen ServiceNow’s position in the rapidly evolving AI-powered business transformation market.
The acquisition comes at a time when enterprises are increasingly investing in advanced AI solutions to enhance IT operations and improve employee experiences. Moveworks, which was valued at $2.1 billion after raising $200 million in Series C funding in 2021 (bringing its total funding to $315 million), has established itself as a formidable player in the agentic AI space.
Moveworks has built an impressive client portfolio that includes major technology companies such as Broadcom (AVGO), Palo Alto Networks (PANW), and Pinterest (PINS). The company’s AI chatbot solution focuses specifically on understanding and resolving employee issues through conversational interfaces, with integration capabilities across multiple platforms including ServiceNow, Slack, and Microsoft’s SharePoint.
While ServiceNow’s existing “Now Assist” already competes with Moveworks’ AI chatbot, the two companies have taken fundamentally different approaches to enterprise AI. ServiceNow has focused on integrating AI throughout its entire service management platform to optimize workflows and efficiency, while Moveworks has specialized in creating seamless employee support experiences through natural language interactions.
The strategic importance of this acquisition was highlighted by Amit Zavery, ServiceNow’s president, chief operating officer, and chief product officer, who stated that the move will propel ServiceNow forward in “agentic AI-powered business transformation.” Zavery emphasized that the combination of Moveworks’ AI-first experience with ServiceNow’s workflow automation capabilities would accelerate enterprise-wide AI adoption.
Moveworks co-founder and CEO Bhavin Shah framed the acquisition as an opportunity to scale the company’s vision of simplifying workplace complexity through intuitive AI interfaces. With ServiceNow’s extensive platform capabilities, Moveworks will be able to expand its reach and impact across enterprise environments.
The market’s initial reaction to the announcement saw ServiceNow’s stock drop by $41.32 or 4.88% to $809.15 in early trading Monday, suggesting some investor caution regarding the substantial investment. However, as enterprises continue to prioritize digital transformation initiatives, ServiceNow’s bold move positions the company to capture a larger share of the growing market for AI-enhanced business operations.
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