ServiceNow Nears Deal to Buy AI Assistant Maker Moveworks

(Bloomberg) — ServiceNow Inc. is nearing a deal to buy artificial intelligence firm Moveworks, people 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 people. The purchase could value Moveworks at close to $3 billion, they said.

While discussions are advanced they could still be delayed or falter, the people said, asking not to be identified discussing confidential information. A representative for ServiceNow declined to comment. A spokesperson for Moveworks couldn’t 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 Plc, GitHub Inc. and Broadcom Inc., 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 $2.1 billion in a 2021 funding round.

Led by Chief Executive Officer Bill McDermott, ServiceNow makes applications that help firms organize 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 SE, where he oversaw a number of high-profile acquisitions.

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