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.
