On Monday, ServiceNow announced that it has reached an agreement to acquire Moveworks, a company specializing in automation and AI solutions for enterprises.
ServiceNow will invest $2.85 billion in Moveworks, utilizing a combination of cash and stock. The company anticipates finalizing the transaction in the latter half of 2025. Bloomberg reported on the deal late on Sunday evening.
As of June 2021, Moveworks had a valuation of $2.1 billion.
“Acquiring Moveworks represents a significant advancement for ServiceNow in our pursuit of AI-driven business transformation,” commented Amit Zavery, President and COO of ServiceNow, in a press release. “The expertise of Moveworks’ team, along with its sophisticated AI-based solutions, combined with ServiceNow’s robust AI-powered workflow capabilities, will enhance AI adoption across enterprises and yield transformative results for employees and their customers.”
Zavery emphasized that the acquisition makes strategic sense for ServiceNow, given their shared customer base and the seamless integration of their product offerings. By integrating Moveworks into its operations, ServiceNow aims to create a platform that merges its strengths in agentic AI and automation with Moveworks’ AI assistant and enterprise search technologies, according to Zavery.
Founded in 2016 by Bhavin Shah, Vaibhav Nivargi, Varun Singh, and Jiang Chen, Moveworks emerged from stealth mode in 2019, introducing an application aimed at streamlining high-level IT support for enterprises. Over time, the startup has diversified its product line to serve various business functions including HR, finance, and facilities management.
Moveworks’ clientele includes notable companies such as Unilever, Instacart, Siemens, and Toyota, as noted on its official website. Before the acquisition by ServiceNow, Moveworks successfully raised over $300 million from investors, including Tiger Global, Iconiq Growth, and Kleiner Perkins, and employs more than 500 people.
“Moveworks simplifies the complex workplace challenges employees face by providing an intuitive and engaging interface for navigating and acting across any enterprise system,” Shah stated. “Joining ServiceNow opens up tremendous opportunities to enhance our innovation and fulfill our commitment through their AI-driven platform, redefining the experience for both employees and customer service teams.”
This acquisition reinforces ServiceNow’s commitment to integrating cutting-edge AI technologies. Earlier in January, the company purchased Cuein, a platform focused on AI-driven conversation data analysis, to bolster its data handling capabilities.
ServiceNow claims that its latest AI solutions are witnessing the fastest growth in the company’s history. As of December 2024, it reported nearly 1,000 “AI customers” and approximately $200 million in annual contract value for its “Pro Plus” AI tier.
In its most recent fiscal quarter (Q4 2024), the Santa Clara-based ServiceNow announced subscription revenues of $2.96 billion, partly driven by increased AI adoption.
Compiled by Techarena.au.
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