ServiceNow has announced its acquisition of AI firm Moveworks in a $2.85 billion cash-and-stock deal, marking its largest acquisition to date. The move comes as enterprises accelerate investments in generative AI to enhance IT operations and streamline enterprise workflows. With the addition of Moveworks, ServiceNow is expanding its AI capabilities to provide more advanced automation solutions to its global customer base.
Moveworks, known for its AI-driven assistant technology, helps organizations resolve employee issues through natural language processing and autonomous task execution. Its platform is widely integrated across enterprise tools such as ServiceNow, Slack, and Microsoft SharePoint, offering AI-powered solutions to companies like Broadcom, Palo Alto Networks, and Pinterest. ServiceNow CFO Gina Mastantuono stated that the company has no immediate plans for layoffs related to the acquisition and does not anticipate regulatory hurdles in finalizing the deal.
The acquisition strengthens ServiceNow’s AI-first approach by integrating Moveworks’ agentic AI into the Now Platform. While both companies offer AI-driven automation, ServiceNow’s “Now Assist” focuses on workflow automation across IT, HR, and customer service, while Moveworks specializes in conversational AI for resolving employee queries. The combined capabilities are expected to provide enterprises with enhanced AI-powered service management, improving efficiency and user experience across business functions.
Moveworks previously raised $200 million in a Series C funding round in 2021, bringing its total funding to $315 million and achieving a valuation of $2.1 billion. The round was led by Tiger Global and Alkeon Capital, with participation from Lightspeed Venture Partners, Sapphire Ventures, Bain Capital, ICONIQ Growth, and Kleiner Perkins. ServiceNow’s acquisition surpasses that valuation, highlighting the increasing importance of AI-powered automation in enterprise software.
Shares of ServiceNow fell 7% following the announcement, though analysts expect the long-term benefits of integrating Moveworks’ AI technology to outweigh short-term market fluctuations. The deal is expected to close in the second half of 2025, with J.P. Morgan Securities LLC serving as ServiceNow’s lead financial adviser. As companies continue to invest in AI, this acquisition positions ServiceNow at the forefront of enterprise automation, providing customers with more intelligent and responsive digital workflows.
