ServiceNow Explores Decagon Acquisition Talks in AI Expansion

ServiceNow and AI agent startup Decagon held early acquisition discussions on October 13, 2026, as the enterprise software company evaluates ways to expand its artificial intelligence capabilities. The talks involve ServiceNow and other potential buyers, according to reports from Business Insider.

Decagon, founded in 2023, builds AI agents for customer service operations across voice, chat, email, and SMS channels. According to Business Insider, the company has worked with customers including Duolingo, Notion, Hertz, and Deutsche Telekom.

TradingView reported that Decagon hired a bank to evaluate purchase interest after reaching a $4.5 billion valuation earlier in 2026. The company could pursue another funding round if a sale does not happen.

According to Business Insider, Decagon raised $250 million in January in a funding round led by Coatue Management and Index Ventures, tripling its valuation to $4.5 billion in less than six months.

ServiceNow has expanded its AI portfolio through acquisitions and investments. Business Insider reported that the company bought Moveworks for $2.85 billion in 2025 and completed a $7.75 billion acquisition of Armis in April 2026.

ServiceNow reported second quarter 2026 revenue above the $3.92 billion consensus estimate, while AI-related Now Assist deals increased nearly 70% year over year, according to Business Insider.

GuruFocus reported that ServiceNow has a market capitalization of $143.22 billion and operates a cloud platform that automates enterprise workflows across IT service management, customer service, human resources, security operations, and industry processes.

GuruFocus also reported that ServiceNow's GF Score is 88 out of 100, with growth and momentum each receiving a 10 out of 10 rating. The company serves enterprise customers through AI-driven workflow products and subscriptions.

The potential Decagon transaction follows broader consolidation in the AI agent market. Startup Fortune reported that enterprise software companies are seeking acquisitions to add specialized AI capabilities rather than developing every technology internally.

ServiceNow Ventures also took a 5% stake in BusinessNext, an AI banking software company, at a $700 million valuation, according to Startup Fortune. The investment connects BusinessNext AI agents with ServiceNow's AI Control Tower platform.