ServiceNow has announced its agreement to acquire the artificial intelligence startup Moveworks for an estimated $2.85 billion, combining cash and stock in the deal. This move is a strategic initiative as the cloud computing service provider aims to enhance its AI assistant portfolio. Moveworks stands out in the industry with its advanced front-end AI assistant and enterprise search technology, which has become a vital tool for customer service agents.
Within approximately 18 months, Moveworks has successfully scaled its platform to support nearly 5 million employee users, a testament to its demand and effectiveness in improving customer service interactions. ServiceNow has integrated itself into Moveworks’ ecosystem, becoming one of its over 100 technological partners.
The two companies share around 250 mutual customers, creating a synergy that is set to propel both firms forward in the AI sector. Amit Zavery, the president, chief operating officer, and chief product officer at ServiceNow, expressed confidence in the acquisition, stating, "Moveworks' talented team and elegant AI-first experience, combined with ServiceNow's powerful AI-driven workflow automation, will supercharge enterprise-wide AI adoption and deliver game-changing outcomes for employees and their customers." This highlights the transformative potential of their collaboration, aiming to facilitate a seamless integration of AI capabilities across organizations. Despite the positive outlook surrounding the acquisition, ServiceNow's share price saw a decline of 7.6% during Monday's trading session.
Bhavin Shah, co-founder and Chief Executive of Moveworks, shared his enthusiasm for the merger, noting, "Becoming part of ServiceNow presents an incredible opportunity to accelerate our innovation." The acquisition is anticipated to finalize in the latter half of the year, pending regulatory approvals and other considerations.
ServiceNow believes that this strategic move is crucial for driving its AI platform's utilization, particularly in key growth areas like customer relationship management. By the end of 2024, ServiceNow aims to bolster its AI customer base to nearly 1,000 and has reported exceeding $200 million in annual contract value for its Pro Plus AI offering.
This acquisition could be a significant step in solidifying ServiceNow's position in the competitive AI landscape..