ServiceNow nears deal to buy AI assistant maker Moveworks

[NEW YORK] ServiceNow is nearing a deal to buy artificial intelligence (AI) firm Moveworks, sources familiar with the matter said, in what would be its largest acquisition to date.

The software company is putting the final touches on a deal for Mountain View, California-based Moveworks that could be announced as soon as the coming days, according to the sources. The purchase could value Moveworks at close to US$3 billion, they said.

While discussions are advanced they could still be delayed or falter, the sources said, asking not to be identified discussing confidential information. A representative for ServiceNow declined to comment. A spokesperson for Moveworks could not immediately be reached for comment.

Created in 2016, Moveworks provides companies with AI assistants to deal with employee requests. Its technology is used by companies including Unilever, GitHub and Broadcom, according to its website. Moveworks has received backing from investors including Kleiner Perkins, Lightspeed Venture Partners and Bain Capital Ventures. The company was valued at US$2.1 billion in a 2021 funding round.

Led by chief executive officer Bill McDermott, ServiceNow makes applications that help firms organise and automate their personnel and information technology operations. Like many of its peers, the Santa Clara, California-based company has been baking generative AI features into its products. Prior to joining ServiceNow, McDermott was CEO of software giant SAP, where he oversaw a number of high-profile acquisitions.

Shares in ServiceNow have risen more than 12 per cent over the last 12 months, giving the company a market value of about US$175 billion. In January, it gave a fiscal-year sales outlook that fell short of expectations, saying it is focused on fuelling adoption of new generative AI products rather than making significant revenue for those tools in the near future. BLOOMBERG