ServiceNow announced on Monday its plans to acquire Moveworks, a company specializing in enterprise automation and AI tools. The deal involves a payment of $2.85 billion in cash and stock, with an expected closing date in the second half of 2025.

As of June 2021, Moveworks was valued at $2.1 billion. ServiceNow’s president and COO, Amit Zavery, expressed excitement about the acquisition, stating that it will propel the company forward in AI-powered business transformation. The acquisition is seen as an opportunity to enhance AI adoption and improve outcomes for employees and customers.

Founded in 2016 by Bhavin Shah, Vaibhav Nivargi, Varun Singh, and Jiang Chen, Moveworks initially focused on automating IT support for enterprises. Over time, the company expanded its offerings to cover other areas such as HR, finance, and facilities management. Noteworthy clients include Unilever, Instacart, Siemens, and Toyota.

Prior to the acquisition by ServiceNow, Moveworks raised over $300 million in funding from investors like Tiger Global and Kleiner Perkins. The acquisition aligns with ServiceNow’s commitment to AI technologies, following the earlier purchase of Cuein, an AI conversation data analysis platform.

ServiceNow has reported significant growth in its AI solutions, with nearly 1,000 AI customers and $200 million in annual contract value for its AI tier as of December 2024. In the most recent fiscal quarter, the company generated $2.96 billion in subscription revenues, driven by increased AI adoption.