ServiceNow to buy AI firm Moveworks in record $2.9 billion deal to tap new customers

ServiceNow said on Monday it would buy artificial intelligence firm Moveworks for $2.85 billion, marking the software maker's largest-ever acquisition at a time when enterprises are spending heavily to enhance their IT operations.

The cash-and-stock deal for privately owned Moveworks is expected to close in the second half of 2025.

Moveworks, which offers agentic AI solutions to assist clients, counts chipmaker Broadcom, cybersecurity company Palo Alto Networks and social media platform Pinterest among its customers.

Shares of Santa Clara, California-based ServiceNow were down 2.4% in early trading. They have risen about 15% over the past 12 months.

ServiceNow's "Now Assist" competes with Moveworks' AI chatbot, but they take different approaches.

Moveworks focuses on using AI to understand and resolve employee issues through chat. Its chatbot can be integrated with various platforms such as that of ServiceNow, Salesforce's Slack and Microsoft's SharePoint.

ServiceNow integrates AI into its entire service management platform, aiming to streamline workflow and improve overall efficiency.

In 2021, Moveworks closed a $200 million in Series C funding round, which took its total funding to $315 million, with a valuation of $2.1 billion.

Bloomberg News on Sunday first reported about the companies nearing a deal, citing people familiar with the matter.