Mizuho says ServiceNow further positioning itself for AI world with Veza deal

Mizuho analyst Gregg Moskowitz notes ServiceNow (NOW) announced earlier today it is acquiring Veza, a high-growth Identity Governance & Administration vendor, for an undisclosed amount — reportedly over $1B. In the firm’s view, Veza is an innovative IGA vendor that represents an interesting asset for ServiceNow, particularly as it will combine this with its AI control tower and existing risk and security business. Meanwhile, its recent checks on Veza indicate good mid-market success in IGA. Moreover, the firm anticipates good success in cross-selling to ServiceNow’s enterprise base. More broadly, Mizuho remains confident ServiceNow is well-positioned for high growth over the next few years, fueled by ongoing demand for workflow automation, strong cross-sell opportunities, and AI monetization. The firm reiterates an Outperform rating on ServiceNow with a price target of $1,150.