ServiceNow, a prominent digital workflow company, has announced its acquisition of Moveworks, a pioneer in enterprise-focused automation and AI tools, in a deal worth $2.85 billion. The acquisition, which is expected to close in the second half of 2025, will see ServiceNow pay a mix of cash and stock to acquire Moveworks.

Moveworks, founded in 2016 by Bhavin Shah, Vaibhav Nivargi, Varun Singh, and Jiang Chen, has established itself as a leader in automation and AI solutions for enterprises. The company's valuation stood at $2.1 billion as of June 2021, and it has raised over $300 million in funding from notable investors like Tiger Global, Iconiq Growth, and Kleiner Perkins. Moveworks boasts an impressive client roster, including Unilever, Instacart, Siemens, and Toyota, and has expanded its product portfolio to cater to various lines of business, such as HR, finance, and facilities management.

According to ServiceNow President and COO Amit Zavery, the acquisition will enable the company to "take another giant leap forward in agentic AI-powered business transformation." Zavery emphasized the strategic fit between ServiceNow and Moveworks, citing their shared customers and tightly integrated product offerings. By integrating Moveworks into its platform, ServiceNow aims to create a comprehensive solution that combines its AI-driven workflow automation with Moveworks' AI assistant and enterprise search technology.

The deal solidifies ServiceNow's commitment to embracing emerging AI technologies, following its acquisition of Cuein, an "AI-native" conversation data analysis platform, in January. ServiceNow has reported significant growth in its AI solutions, with nearly 1,000 "AI customers" as of December 2024 and around $200 million in annual contract value for its "Pro Plus" AI tier. The company's AI-powered solutions have been a key driver of its subscription revenue growth, with $2.96 billion in revenue reported in its most recent fiscal quarter (Q4 2024).

The acquisition is expected to have significant implications for the industry, as it will create a powerful platform for enterprise-wide AI adoption. Moveworks' founders and employees will join ServiceNow, bringing their expertise in automation and AI to the company. The deal is a testament to the growing importance of AI in business transformation and the need for companies to invest in emerging technologies to stay competitive.

In a statement, Moveworks' co-founder Bhavin Shah expressed his excitement about the acquisition, stating that it presents an "incredible opportunity to accelerate our innovation and deliver on our promise" through ServiceNow's AI agent-fueled platform. The deal marks a significant milestone for both companies, as they embark on a new chapter in their journey to redefine the user experience for employees and customer service teams.

As the AI landscape continues to evolve, the ServiceNow-Moveworks acquisition is likely to have a ripple effect on the industry, driving further innovation and adoption of AI-powered solutions. With this deal, ServiceNow has cemented its position as a leader in AI-powered business transformation, and the industry will be watching closely to see how this acquisition unfolds.