02:26 PM EDT, 03/10/2025 (MT Newswires) -- ServiceNow ( NOW ) said Monday it has agreed to acquire artificial intelligence startup Moveworks for $2.85 billion in a cash-and-stock deal as the cloud computing services provider looks to bolster its AI assistant offering.

Moveworks is behind a front-end AI assistant and enterprise search technology that is used by customer service agents. It counts Toyota ( TM ) , Unilever ( UL ) , Palo Alto Networks ( PANW ) , and Instacart (CART) among its customers. The company's new platform has increased to almost 5 million employee users in about 18 months.

ServiceNow ( NOW ) said it's already one of Moveworks' more than 100 technology integrations. The companies have roughly 250 mutual customers, according to ServiceNow ( NOW ).

"Moveworks' talented team and elegant AI-first experience, combined with ServiceNow's ( NOW ) powerful AI-driven workflow automation, will supercharge enterprise-wide AI adoption and deliver game-changing outcomes for employees and their customers," said Amit Zavery, president, chief operating officer, and chief product officer at ServiceNow ( NOW ).

The company's shares were down 7.6% in Monday afternoon trade.

"Becoming part of ServiceNow ( NOW ) presents an incredible opportunity to accelerate our innovation," Moveworks co-founder and Chief Executive Bhavin Shah said.

The deal is expected to close in the second half of this year, subject to regulatory approvals and other conditions. ServiceNow ( NOW ) expects the acquistion to help drive the use of its AI platform to "accelerate enterprise adoption and innovation" across customer relationship management and other key growth areas, according to the statement.

ServiceNow ( NOW ) said that as of the end of 2024, it had almost 1,000 AI customers and had exceeded $200 million in annual contract value for its Pro Plus AI offering.

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