ServiceNow Acquires Moveworks For $2.85 Billion

ServiceNow has announced a $2.85 billion acquisition of Moveworks, a business process automation company, in a deal involving cash and stock, Fortune’s Jeremy Kahn reported.

Photo Caption I Photo: ServiceNow Jobs Linkedin 

ServiceNow, a Silicon Valley-based IT software giant competing with Salesforce, Microsoft, and Google, framed the deal as a strategic move into the growing AI-powered digital assistance market.

Moveworks, which has about 500 employees, was last valued at $2.1 billion in 2021.

Meanwhile, ServiceNow, a publicly traded company, is valued at roughly $175 billion. The acquisition reflects the rising importance of enterprise search tools in the AI era.

These tools help prevent AI models from generating false information (or ‘hallucinating’) and enable AI assistants to perform tasks more accurately by leveraging company knowledge bases.

ServiceNow said the deal will allow it to merge its AI-driven automation with Moveworks’ AI assistant. The acquiring company praised Moveworks for its advanced AI-based search tools, which help businesses retrieve information from large internal data pools.

ServiceNow President and CFO Gina Mastantuono told Fortune that Moveworks had built an “elegant front-end” AI assistant that complements ServiceNow’s back-end automation capabilities.

More than 90% of Moveworks’ customers have deployed its AI assistant company-wide, an adoption rate that ServiceNow found particularly attractive.