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ServiceNow (NOW) Strengthens Portfolio With 4Industry Buyout

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ServiceNow (NOW - Free Report) recently announced that it has entered into an agreement to acquire 4Industry, a Netherlands-based partner known for its manufacturing technology application. It also announced the completion of the acquisition of Smart Daily Management, a connected digital worker application from EY.

These acquisitions mark a significant step forward in ServiceNow’s quest to revolutionize smart industrial environments and empower connected workers. The addition of 4Industry and Smart Daily Management broadens ServiceNow’s operational technology (OT) management capabilities, specifically in the realm of Connected Worker solutions.

4Industry, established in 2018, introduces a mobile-enabled application aimed at enhancing shop floor operations through digital tools. Meanwhile, Smart Daily Management streamlines laborious tasks, fostering operational excellence. This strategic integration will enable ServiceNow’s industrial clientele to streamline processes, drive efficiency and elevate productivity.

These acquisitions underscore ServiceNow’s commitment to innovation and customer-centric solutions. By leveraging the technological prowess of 4Industry and Smart Daily Management, ServiceNow aims to introduce a new Connected Worker solution on its platform by 2025. The move not only enriches ServiceNow’s offerings but also exemplifies its dedication to fostering a connected, efficient and productive workforce.

Moreover, the collaboration with EY and Plat4mation, an affiliated services company of 4Industry, underscores ServiceNow’s commitment to maintaining strong alliances and partnerships to drive innovation and implementation in the OT domain.
 

 

As ServiceNow continues to expand its global footprint, these acquisitions reinforce its position as a leader in digital transformation. By bringing impactful automation solutions to the forefront, the company is poised to redefine the future of smart industrial environments and elevate the potential of connected workers worldwide.

Acquisitions, Strong Portfolio Aids ServiceNow’s Prospects

ServiceNow has been benefiting from the rising adoption of its workflows by enterprises undergoing digital transformation. It had 1897 total customers with more than $1 million in annual contract value at the end of the fourth quarter of 2023.

Acquisitions are expanding NOW’s portfolio. It recently announced a plan to acquire NetACE network management and automation technology from Atrinet to accelerate business transformation for telecommunications companies.

The acquisition of UltimateSuite, expected to be completed in the first quarter of 2024, will strengthen ServiceNow’s process mining solutions, thereby improving its automation and AI capabilities.

NOW is riding on its strong portfolio, driven by an expanding generative AI portfolio. It recently announced the release of StarCoder2, a family of open-access large language models for code generation in collaboration with Hugging Face and NVIDIA (NVDA - Free Report) .

StarCoder2 offers three model sizes: a 3 billion-parameter model trained by ServiceNow, a 7 billion-parameter model trained by Hugging Face and a 15 billion-parameter model built by NVIDIA with NVIDIA NeMo and trained on NVIDIA accelerated infrastructure.

ServiceNow and NVIDIA have also broadened their partnership with the introduction of telco-specific generative AI solutions to elevate service experiences. The first solution, Now Assist for Telecommunications Service Management, is built on the Now Platform and uses NVIDIA AI to help boost agent productivity, speed time to resolution and enhance customer experiences.

Moreover, ServiceNow and NVIDIA plan to build out additional telco-specific GenAI use cases based on the unique needs of customers.

Zacks Rank & Other Stocks to Consider

ServiceNow currently has a Zacks Rank #2 (Buy).

Meta Platforms (META - Free Report) and Synopsys (SNPS - Free Report) are a couple of other top-ranked stocks in the broader sector that investors can consider, each sporting a Zacks Rank #1 (Strong Buy) at present. You can find the complete list of today’s Zacks #1 Rank stocks here.

The long-term earnings growth rate for Meta Platforms and Synopsys is currently pegged at 19.5% and 17.51%, respectively.

Shares of Meta Platforms and Synopsys have surged 40.4% and 8.9%, respectively, on a year-to-date basis.

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