ServiceNow’s recent $1.4B acquisition of the Google-backed startup Moveworks is already being reviewed for anticompetitive behavior, according to Bloomberg. The review process started in June and has both companies facing a “second request” from regulatory authorities. This request requires the filing of more detailed information before the deal can move forward.
The deal will help supercharge ServiceNow’s artificial intelligence and automation strategy by bringing Moveworks own technology into the fold. The open-ended antitrust investigation promises to focus on possible anti-competitive market effects. What remains unknown The companies—none of them are publicly breaking the news themselves—have not clarified what precisely is prompting regulators’ concerns.
As of publication Moveworks had still not responded to this open review. This silence creates an atmosphere of high-stakes suspense around the whole process, as stakeholders and big bets wait to see what happens next. The “second request,” a usual process in antitrust reviews, requests extensive data relevant to the merger. The materials they usually ask for include public financial statements, detailed market studies, and a detailed plan of operation.
The pressure to go regulated ServiceNow and Moveworks are under increasing regulatory pressures. This is to make sure that their adoption would not be detrimental to competitive practices in the industry. The release of this extra detailed information is essential for the deal to proceed. Until then, such data is tracked down and submitted and analyzed, the fate of this acquisition is uncertain.