US $2.85 billion AI acquisition blocked, US Department of Justice launches in-depth antitrust review of ServiceNow (NOW.US) acquisition of Moveworks

The Zhitong Finance App learned that the US Department of Justice is conducting an in-depth antitrust review of ServiceNow (NOW.US)'s plan to acquire the artificial intelligence company Moveworks for 2.85 billion US dollars. According to people familiar with the matter, the two companies have received a “second request” from the authorities, which means that the government wants more information related to the proposed acquisition. The two companies must respond to the authorities' antitrust inquiries before the deal can proceed.

According to people familiar with the matter, the US Department of Justice initiated this in-depth investigation in June. Although only a few deals face such follow-up reviews, this could extend the regulatory approval process for deals by months or even more than a year. If antitrust officials find evidence of anti-competitive effects, they may file a lawsuit requesting a judge to block the transaction.

ServiceNow specializes in software for automating information technology and human resources operations, and the company declined to comment. The US Department of Justice also declined to comment, and Moveworks did not respond to requests for comment.

Expansion in the field of artificial intelligence

The acquisition, announced in March of this year, will help ServiceNow expand its application of artificial intelligence in corporate human resources and information technology services.

Under CEO Bill McDermott's leadership, ServiceNow has developed applications that help companies integrate and automate personnel and information technology operations. Like many of its peers, the Santa Clara, California-based company is incorporating generative artificial intelligence capabilities into its products.

Moveworks, founded in 2016, provides companies with artificial intelligence assistants to handle all kinds of requests from employees. According to its official website, companies such as Unilever, GitHub, and Broadcom are all using its technology. Moveworks' investors include institutions such as Kleiner Perkins, Lightspeed Ventures, Bain Capital Ventures, Alkeon Capital Management, and Iconiq Growth. In the 2021 round of financing, the company was valued at $2.1 billion.

Moveworks said that most of its customer deployments are already using ServiceNow services. The initial integration between the two companies will focus on providing customers with AI-driven self-service tools.

Caused anxiety

The rise of priority applications of artificial intelligence has aroused anxiety among established software makers. Companies including ServiceNow, Microsoft, and Salesforce are racing to deploy artificial intelligence capabilities across their platforms. Many companies enhance their technological capabilities through acquisitions or partnerships with start-ups.

ServiceNow and MoveWorks are committed to making it easier for employees to use internal systems, whether it's requesting a new work laptop or reviewing HR policies. Both companies are pursuing the vision of having artificial intelligence models complete more of these workflows on behalf of users.

ServiceNow said in March that the deal is expected to be completed in the second half of 2025.