ServiceNow Bets Big with $2.85 Billion Moveworks Acquisition
Deal News | Mar 18, 2025 | EIN
ServiceNow is set to acquire AI startup Moveworks for $2.85 billion, as part of a disciplined expansion strategy within the AI landscape. CFO Gina Mastantuono has emphasized a commitment to prudent mergers and acquisitions, despite the scale of the proposed deal. Moveworks, located in Mountain View, California, offers AI technology that aids employees in retrieving information and automating tasks across diverse domains, including HR and finance. Top-tier clientele such as Siemens and Unilever utilize Moveworks’ platform. The transaction is expected to close in the latter half of the year, bolstering ServiceNow’s AI and automation capabilities. Amid scrutiny of big tech's AI investments, the deal reflects a cautious yet transformational approach. The broader M&A environment is poised for growth despite market uncertainties and changing federal policies under President Donald Trump. Observers suggest this could become instrumental for ServiceNow if the integration preserves Moveworks’ capabilities.
Sectors
- Information Technology
- Artificial Intelligence
Geography
- United States – Both ServiceNow and Moveworks are based in the United States, and the regulatory environment and market impacts discussed are primarily US-focused.
Industry
- Information Technology – The article centers on an acquisition within the tech industry, particularly involving AI and enterprise software sectors.
- Artificial Intelligence – The acquisition involves an AI startup, Moveworks, highlighting the focus on enhancing AI capabilities.
Financials
- $2.85 billion – Proposed acquisition price for Moveworks by ServiceNow.
- $500 billion – U.S. national AI infrastructure initiative announced by Trump.
- $100 billion – Initial pledge for AI infrastructure by Oracle, OpenAI, SoftBank, and MGX.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| ServiceNow | Acquirer | Company | An enterprise software company looking to expand its AI capabilities. |
| Moveworks | Target | Company | An AI startup that provides solutions for automating employee tasks and finding information. |
| Gina Mastantuono | CFO of ServiceNow | Person | The Chief Financial Officer of ServiceNow, providing strategy insight into the M&A approach. |
| Donald Trump | President of United States | Government | Mentioned in context of policy influences on M&A activities. |
| Lawrence Chu | M&A Expert | Person | Co-chair of the global M&A group at law firm Goodwin Procter, offers insight on M&A trends. |
| Bhavin Shah | CEO of Moveworks | Person | CEO of Moveworks, discusses the strategic fit of the acquisition. |