ServiceNow’s proposed $2.85BN acquisition of enterprise AI startup Moveworks might be in danger of falling through.
Initially announced in March of this year, the purchase was set to be the largest in ServiceNow’s history.
However, recent reports from Bloomberg have claimed that the deal is currently being reviewed by the U.S. Justice Department due to antitrust concerns.
According to the publication, the investigation, which began in June, has now escalated.
Citing “sources familiar with the matter”, Bloomberg asserts that both companies received a “second request” for more information, a step that must be completed before the deal can proceed.
CX Today contacted ServiceNow for a statement on the reports. However, it chose not to comment.
Moveworks specializes in deploying AI assistants that manage customer and employee requests.
The startup has an impressive roster of high-profile customers, including Siemens, Toyota, and Unilever.
Why Might the Deal Be Ruffling Regulatory Feathers?
ServiceNow is the solution most enterprise IT teams use to orchestrate and automate middle- and back-office workflows. By moving deeper into the CRM market, ServiceNow can now compose more front-office processes, too.
With Moveworks, ServiceNow may automate these front office processes, including fulfilment workflows that stretch from the front and into the middle and back office.
As a result, one company could run end-to-end customer (and employee) fulfilment.
While that goes against ServiceNow’s philosophy of working with everyone, not taking them out, it’s a potential concern that regulators may wish to look long and hard at.
Could This Impact ServiceNow’s CRM Push?
In January, ServiceNow turned plenty of heads when it announced its official move into the CRM space … primarily because most people thought the company was already a CRM provider.
However, having previously chosen to avoid labeling itself as a CRM vendor, it is now fully embracing the moniker and has launched a unified CRM platform.
Its differentiator is in enabling that end-to-end fulfillment, with Moveworks being a big piece of the puzzle.
When announcing the acquisition, Bill McDermott, CEO of ServiceNow, even shared how the move boosts the company’s ambitions to be the CRM “market leader”.
Given this, fumbling the Moveworks acquisition could dent its broader plans.
Still, ServiceNow has its CRM differentiators. For instance, it’s the only CRM provider to offer service, sales, order management, and field service management on one platform.
However, if this falls through, it’ll be fascinating to see how ServiceNow pivots and whether it will set its sights on companies offering similar services to Moveworks.
ServiceNow’s 2025 Acquisition Spree
While the Moveworks deal is grabbing headlines, it’s far from the only M&A activity that ServiceNow has participated in this year.
For starters, the company snapped up Cuein, a conversational intelligence startup dubbed a “co-pilot for CX teams” to strengthen its agentic AI play.
This was followed in February by the acquisition of Quality 360°, an AI-powered quality management platform that bolsters its Manufacturing Commercial Operations (MCO) product.
Then, in April, ServiceNow added Logik.ai, an AI-driven CPQ (Configure-Price-Quote) specialist, enhancing its CRM credentials by streamlining complex sales workflows.
Finally, May saw the acquisition of data.world, boosting its AI strategy by enhancing ServiceNow’s data cataloging and governance capabilities.
ServiceNow shared more on many of these deals at its Knowledge 2025 conference. For a full rundown, check out our article: ServiceNow Knowledge 2025: All 11 Major Announcements
