ServiceNow (NYSE:NOW) shares are in focus today after the workflow automation solutions provider announced the acquisition of NetACE network management and automation technology from Atrinet. The company is also partnering with current Wall Street darling NVIDIA (NASDAQ:NVDA) on generative AI.
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NOW plans to re-platform NetACE into its own platform. The acquisition is aimed at delivering end-to-end network lifecycle management to telecom companies on a single platform. With this M&A move, Atrinet now becomes a certified ServiceNow consulting and implementation partner. The move is expected to help the Israel-based company to expand its offerings to ServiceNow’s customers. While financial details of the transaction remained under wraps, ServiceNow expects the deal to close in the second quarter.
Separately, ServiceNow has teamed up with NVIDIA to introduce generative AI solutions targeted toward telecom companies. The first solution, Now Assist, is created to help telcos improve agent productivity, lower time to resolution, and deliver better customer experiences. ServiceNow and NVIDIA first partnered in May 2023. The two companies plan to introduce additional telco-specific generative AI solutions as well.
What Is the Target Price for ServiceNow?
ServiceNow’s stock price has rallied by nearly 80% over the past year. Overall, the Street has a Strong Buy consensus rating on ServiceNow, and the average NOW price target of $851.26 points to a modest 10.4% potential upside in the stock.
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