ServiceNow Acquires AI Firm Element AI

TL;DR

ServiceNow buys AI company Element AI to boost its tech game.

AI Summary

ServiceNow, Inc. announced on July 24, 2024, that it has entered into a definitive agreement to acquire Element AI, a leader in artificial intelligence. The acquisition is expected to close in the first quarter of 2020 and will enhance ServiceNow's AI capabilities. Specific financial terms of the deal were not disclosed.

Why It Matters

This acquisition signals ServiceNow's commitment to bolstering its artificial intelligence offerings, which could lead to more advanced automation and insights for its customers.

Risk Assessment

Risk Level: medium — Acquisitions always carry integration risks and the potential for overpayment, though the strategic benefit of acquiring AI talent is significant.

Key Players & Entities

• ServiceNow, Inc. (company) — Acquiring company
• Element AI (company) — Acquired company
• July 24, 2024 (date) — Announcement date
• first quarter of 2020 (date) — Expected closing period

FAQ

Key Financial Figures

• $0.001 — ich registered Common stock, par value $0.001 per share NOW The New York Stock Exchan

Filing Documents

• now-20240724.htm (8-K) — 35KB
• ex101agreement.htm (EX-10.1) — 64KB
• erq2fy24.htm (EX-99.1) — 489KB
• image.jpg (GRAPHIC) — 5KB
• image_0.jpg (GRAPHIC) — 16KB
• image_1.jpg (GRAPHIC) — 3KB
• 0001373715-24-000269.txt ( ) — 791KB
• now-20240724.xsd (EX-101.SCH) — 2KB
• now-20240724_lab.xml (EX-101.LAB) — 21KB
• now-20240724_pre.xml (EX-101.PRE) — 12KB
• now-20240724_htm.xml (XML) — 3KB

02 Results of Operations and Financial Condition

Item 2.02 Results of Operations and Financial Condition. On July 24, 2024, ServiceNow, Inc. ("ServiceNow" or the "Company") issued a press release announcing financial results for the three months ended June 30, 2024. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein. The information above, including Exhibit 99.1, is furnished pursuant to Item 2.02 of Form 8-K and is not deemed to be "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to liabilities of that section, nor shall it be deemed incorporated by reference in any filing of ServiceNow under the Securities Act of 1933, as amended (the "Securities Act"), or the Exchange Act, whether made before or after the date hereof and irrespective of any general incorporation language in any filings. Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. On July 24, 2024, the Company and its President and Chief Operating Officer, Chirantan "CJ" Desai, came to a mutual agreement that Mr. Desai would resign from all positions with the Company, effective immediately. As previously referenced in the Company's Form 10-Q for the quarter ended March 31, 2024, through its internal processes, the Company received a complaint that raised potential compliance issues related to one of its government contracts. The Company initiated an internal investigation, with the assistance of outside legal counsel, into the validity of these claims that concern the hiring of the Chief Information Officer of the U.S. Army as the Company's Head of Global Public Sector in March 2023. As a result of the investigation, the Company's Board of Directors (the "Board") determined that Mr. Desai and the hired individual violated Company policy regarding a possible conflict relating to suc

01 Financial Statements and Exhibits

Item 9.01 Financial Statements and Exhibits. (d) Exhibits. 10.1 Mutual Separation and Release Agreement dated July 24, 2024, between the Company and Chirantan J. ("CJ") Desai 99.1 Press release dated July 24, 2024, announcing ServiceNow, Inc.'s financial results for the three months ended June 30 , 2024 104 Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document

SIGNATURES

SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. S ERVICE N OW , I NC . By: /s/ Russell S. Elmer Russell S. Elmer General Counsel Date: July 24, 2024