Aiming to speed up its artificial intelligence push, software maker ServiceNow on Monday said it has agreed to buy AI startup Moveworks for $2.85 billion. ServiceNow stock dipped amid the news.
The Moveworks purchase marks ServiceNow's biggest acquisition. Moveworks' platform features an generative AI assistant for employee support. The cash and stock transaction is expected to close in the second half of 2025.
ServiceNow Stock: 'Front Office' Push
The acquisition also will boost ServiceNow's push into "front-office," customer service management products, analysts say.
In September, Mountain View, Calif.-based Moveworks said it had topped $100 million in annual recurring revenue.
"We believe Moveworks is rapidly scaling in gaining 5 million users within 18 months of its offerings," said Raymond James analyst Adam Tindle in a report.
He added: "To be clear, this is not a cheap acquisition and investors are perhaps rightly shooting first/asking questions later based on the initial reaction, but we note that Moveworks is already on the ServiceNow platform, meaning management likely has strong visibility into business trends. Also, there are 250 shared customers at present, many of which are the largest global organizations, meaning there are likely meaningful synergies in the deal."
Like most software makers, Santa Clara, Calif.-based ServiceNow is racing to integrate artificial intelligence into its products.
Having struggled to generate new revenue from "copilots," software companies are now turning to autonomous, goal-driven AI agents. One big issue for software companies is how fast customers ramp up pilot programs to commercial deployment.
On the stock market today, ServiceNow stock fell 7.8% to close at 783.83. The software stock has shed nearly 28% in 2025.
"Moveworks hides the complexity employees face at work by giving them an intuitive, engaging starting place to search and drive action across any enterprise system," said Bhavin Shah, Movework's chief executive, in a news release. "Becoming part of ServiceNow presents an incredible opportunity to accelerate our innovation and deliver on our promise through their AI agent‑fueled platform to redefine the user experience for employees and customer service teams."
CEO McDermott Expands Products
Under Chairman and Chief Executive Bill McDermott, ServiceNow has also acquired Element AI in 2020, Hitch Works in 2022 and G2K in 2023.
McDermott has taken ServiceNow from its roots in information technology services management into new departments such as human resources, finance, legal and procurement.
In generative AI, analysts expect ServiceNow to compete with Salesforce and others that can leverage large installed customer bases.
ServiceNow Stock
ServiceNow stock has tumbled below all its key moving averages, hitting a six-month low last week.
NOW stock holds an IBD Composite Rating of 84 out of a best possible 99, according to IBD Stock Checkup. The score combines five separate proprietary ratings into one rating. The best growth stocks have a Composite Rating of 90 or better.
Follow Reinhardt Krause on Twitter @reinhardtk_tech for updates on artificial intelligence, cybersecurity and cloud computing.
