ServiceNow Inc ( NOW ) shares are trading lower. The company on Monday announced a deal to acquire Moveworks.

What Happened: ServiceNow ( NOW ) announced that it signed a definitive agreement to acquire Moveworks for $2.85 billion. The deal brings together ServiceNow’s agentic AI and automation strengths with Moveworks’ front-end AI assistant and enterprise search technology.

The acquisition is expected to help the company create a powerful universal AI assistant and introduce more perceptive AI-based enterprise search. The combined offering is expected to drive use of the company’s agentic AI ServiceNow Platform to accelerate enterprise adoption and innovation, including across customer relationship management.

“With the acquisition of Moveworks, ServiceNow ( NOW ) will take another giant leap forward in agentic AI-powered business transformation,” said Amit Zavery, president, chief operating officer and chief product officer at ServiceNow ( NOW ).

“As agentic AI and enterprise-grade search forever change how we work, ServiceNow ( NOW ) moved early to empower employees through AI. Moveworks’ talented team and elegant AI-first experience, combined with ServiceNow’s powerful AI-driven workflow automation, will supercharge enterprise-wide AI adoption and deliver game-changing outcomes for employees and their customers.”

Under terms of the agreement, ServiceNow ( NOW ) will pay Moveworks $2.85 billion through a combination of cash and stock. The transaction is expected to close in the second half of 2025.

It’s worth noting that some of the selloff in ServiceNow ( NOW ) shares is likely tied to broader market weakness. The tech-heavy Nasdaq was leading declines at last check on fears of a potential recession due to tariffs from the Trump administration.

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NOW Price Action: ServiceNow ( NOW ) shares were down 6.2% at $797.41 at the time of publication Monday, according to Benzinga Pro.