Aiming to improve its artificial intelligence-driven corporate solutions, ServiceNow (NOW, Financials) agreed to buy Moveworks in a $2.85 billion cash-and-stock transaction Monday. The purchase would combine enterprise search technology and Moveworks' AI assistant into ServiceNow's platform to automate corporate procedures and simplify staff operations.
ServiceNow, which offers AI-powered business transformation solutions, said the purchase fits its aim to increase its AI capacity in strategic areas such customer relationship management across important areas of development. The firm has put thousands of AI-powered agents into use, and integration of Moveworks' technologies could boost acceptance among businesses.
The agreement reflects ServiceNow's emphasis on artificial intelligence-driven workflow management and automation. As of Dec. 31, 2024, the business said that its AI-powered products had attracted about 1,000 consumers and earned more than $200 million in annual contract value. With over 90% of Moveworks' clients employing AI-powered automation, big companies like Hearst, Instacart, Palo Alto Networks (PANW, Financials), Siemens (SIEGY, Financials), Toyota (TM, Financials), and Unilever (UL, Financials) already utilize their technologies.
The AI solutions of Moveworks concentrate on automating normal company activities like sales processes, customer service, and HR operations and efficiency of enterprise search. Its AI assistant can automate staff requests, provide sales insights, and streamline hiring initiatives.
Subject to regulatory clearances, under the terms of the deal, ServiceNow would purchase Moveworks for $2.85 billion, projected to conclude in the second half of 2025. Following its past of purchasing AI-driven technology companies to improve its enterprise solutions, the transaction signals another phase in ServiceNow's development plan.
