HR and finance software firm ServiceNow (NOW) is in advanced talks to buy security startup Veza for more than $1 billion, according to The Information. For reference, Veza sells subscription software that shows companies exactly which employees and AI agents can access sensitive data and what actions they can take with it. This potential acquisition fits into ServiceNow’s plan to strengthen its AI tools, especially those that automate customer service and IT helpdesk requests.
Claim 50% Off TipRanks Premium and Invest with Confidence
- Unlock hedge-fund level data and powerful investing tools designed to help you make smarter, sharper decisions
- Stay ahead of the market with the latest news and analysis so your portfolio is always positioned for maximum potential
As businesses adopt more AI agents, many are worried about new types of cyberattacks and whether current security tools are enough. Veza hopes to address these concerns by limiting access to approved users and blocking suspicious or malicious system behavior, such as leaked credentials. A deal could be announced as early as next week, though nothing is finalized.
If completed, buying Veza could help ServiceNow stand out in a crowded AI market, where companies like Microsoft (MSFT) and OpenAI (PC:OPAIQ) are promoting similar AI agent features. Veza, which has grown its headcount by more than 50% in the past year, counts Blackstone (BX), Instacart (CART), and Snowflake (SNOW) among its customers. In addition, a typical 12-month contract purchased through Amazon Web Services (AMZN) costs about $100,000. Interestingly, the startup previously raised $235 million and reached an $808 million valuation in April.
Is NOW Stock a Good Buy?
Turning to Wall Street, analysts have a Strong Buy consensus rating on NOW stock based on 26 Buys, two Holds, and one Sell assigned in the past three months, as indicated by the graphic below. Furthermore, the average NOW price target of $1,154.04 per share implies 43.7% upside potential.
