ServiceNow to Acquire Moveworks for $2.85 Billion - AI Expansion

ServiceNow to Acquire Moveworks for $2.85 Billion

ServiceNow announced on Monday an agreement to acquire Moveworks, a developer specializing in enterprise-level automation and artificial intelligence tools.

Deal Details and Valuation

The acquisition will be completed with a combination of cash and stock, totaling $2.85 billion. ServiceNow anticipates the transaction will be finalized during the latter half of 2025. Initial reports regarding the agreement surfaced late Sunday evening, as covered by Bloomberg.

Moveworks had previously been valued at $2.1 billion as of June 2021.

Strategic Rationale

According to ServiceNow president and COO Amit Zavery, the acquisition represents a significant advancement in agentic AI-powered business transformation. He stated that combining Moveworks’ AI-first approach with ServiceNow’s workflow automation capabilities will accelerate AI adoption across enterprises.

Zavery emphasized the synergy between the two companies, noting existing shared customers and tight product integration. Integrating Moveworks will enable ServiceNow to create a platform that leverages both companies’ strengths in AI and automation, including enterprise search technology.

Moveworks Background and Founding

Founded in 2016, Moveworks was established by Bhavin Shah, Vaibhav Nivargi, Varun Singh, and Jiang Chen. Shah had previously co-founded Refresh, which was later acquired by LinkedIn in 2015.

Nivargi previously developed the business analytics platform ClearStory. Singh served as a lead product manager at Meta, overseeing Facebook feature development. Chen brought experience from Yahoo, Google, and Airbnb to the venture.

Product Evolution and Client Base

Moveworks initially emerged from stealth mode in 2019, offering an application designed to automate high-level IT support for large organizations. The company subsequently broadened its product range to encompass HR, finance, and facilities management.

Notable clients of Moveworks include Unilever, Instacart, Siemens, and Toyota. Prior to the acquisition, the company secured over $300 million in funding from investors such as Tiger Global, Iconiq Growth, and Kleiner Perkins, and employs more than 500 people.

Statements from Leadership

Bhavin Shah, CEO of Moveworks, expressed that their technology simplifies complexity for employees by providing an intuitive interface for accessing and acting upon information across enterprise systems. He believes joining ServiceNow will accelerate innovation and fulfill their promise through the platform’s AI agent capabilities.

ServiceNow’s AI Strategy

This acquisition reinforces ServiceNow’s commitment to integrating cutting-edge AI technologies. In January, the company acquired Cuein, a conversation data analysis platform, to bolster its data processing capabilities.

ServiceNow reports that its latest AI solutions are experiencing its fastest growth in company history. As of December 2024, the company had nearly 1,000 customers utilizing its AI offerings, generating approximately $200 million in annual contract value from its “Pro Plus” AI tier.

Financial Performance

In the fourth quarter of 2024, ServiceNow, headquartered in Santa Clara, reported $2.96 billion in subscription revenues, with AI adoption contributing to this growth.