ServiceNow’s takeover of Moveworks ‘clearly an acquihire,’ says BofA

BofA analyst Brad Sills reiterated a Buy rating and $1,280 price target on ServiceNow (NOW) after the company agreed to acquire Moveworks for $2.85B in a combination of cash and stock. The firm estimates that the deal price represents 24x CY25 revenue, and that it is “clearly an acquihire,” with 500 AI experts set to join ServiceNow. Moveworks is also a nice fit with ServiceNow’s evolving AI offering, Now Assist, which enables AI-driven workflow automation view the AI Agent Orchestrator embedded across IT, employee, and customer workflow applications, the analyst tells investors in a research note.