ServiceNow to Acquire Atrinet NetACE Network Technology to Accelerate Business Transformation for Telcos

Rhea-AI Summary

ServiceNow (NOW) announces the acquisition of NetACE™ network management and automation technology from Atrinet to enhance end-to-end network lifecycle management for telecommunications companies. The acquisition aims to drive business transformation by providing comprehensive network management capabilities on a single, AI-first digital workflow platform. ServiceNow's partnership with Atrinet will enable telcos to streamline network processes, boost productivity, and reduce costs. The acquisition reflects ServiceNow's commitment to developing tailored industry solutions to accelerate customer transformation and efficiency.

Insights

Market Research Analyst

The acquisition of NetACE by ServiceNow represents a strategic move to bolster its offerings in the telecommunications sector. By integrating NetACE's network management and automation technology, ServiceNow is positioning itself as a comprehensive provider for telcos, aiming to streamline operations and improve efficiency. The consolidation of network lifecycle management on a single platform is anticipated to address the current inefficiencies telcos face due to manual processes. This could lead to a reduction in operational costs and an increase in productivity for ServiceNow's telecom clients, potentially making ServiceNow's platform more attractive and increasing its market share in this vertical.

From a market perspective, this acquisition could signal ServiceNow's deeper foray into the telecom industry, suggesting possible future growth in this sector. Investors may interpret this move as ServiceNow's commitment to expanding its service offerings, which could have positive implications for the company's growth trajectory and stock performance. However, the impact on the stock market will depend on the successful integration of the technology and the realization of the anticipated operational efficiencies.

Financial Analyst

ServiceNow's acquisition of Atrinet's NetACE technology, while not disclosing financial terms, is an investment in the future of its telecom offerings. The market will be closely monitoring the post-acquisition integration process, as the success of this venture is contingent upon seamless technological integration and market adoption. Investors should consider the potential for increased revenue streams from new and existing telecommunications clients, as ServiceNow leverages NetACE to enhance its Telecom Network Inventory and Order Management products.

Given that the acquisition is set to close in Q2 2024, investors should expect to see the financial impact of this deal reflected in subsequent financial statements. It will be critical to assess the return on investment in subsequent quarters through indicators such as revenue growth in the telecom segment, margin improvements and customer acquisition rates. The long-term financial health of ServiceNow could be positively influenced if the company successfully capitalizes on the growing demand for AI-first digital workflow platforms in the telecom industry.

Telecommunications Industry Expert

The integration of Atrinet's NetACE technology into the ServiceNow platform is a significant development for the telecommunications industry. This move addresses a common pain point for telcos: the complexity of managing extensive network infrastructures. By offering a low-code, cloud-native suite for automating network management processes, ServiceNow is enabling telcos to shift from manual to automated operations, which is critical in an industry that is rapidly evolving with the advent of 5G and IoT technologies.

The partnership between ServiceNow and Atrinet, with Atrinet becoming a certified ServiceNow Consulting and Implementation Partner, suggests a collaborative approach to implementation and customer service post-acquisition. For telco clients, the promise of a unified platform for network lifecycle management, including discovery, activation and incident management, could translate into more agile operations and improved service delivery. This strategic acquisition may enhance ServiceNow's competitive edge in the telecom space, as telcos increasingly seek out intelligent, integrated solutions to manage their networks more efficiently.

Acquisition to enable end-to-end network lifecycle management for telecommunications companies on a single, AI-first platform

BARCELONA, Spain--(BUSINESS WIRE)-- Mobile World Congress -- ServiceNow (NYSE: NOW), the leading digital workflow company making the world work better for everyone, today announced it has signed an agreement to acquire NetACE™ network management and automation technology from Atrinet to accelerate business transformation for telecommunications companies (telcos). Once re-platformed into the ServiceNow platform, Atrinet’s NetACE technology will enable comprehensive, end-to-end network lifecycle management for telcos on a single, AI-first digital workflow platform.

Telcos often lack the tools and technology needed to drive efficiency in managing their network, and frequently rely on manual processes. The addition of Atrinet’s NetACE network discovery and activation capabilities to the Now platform will address these challenges by delivering stronger connectivity for telcos' workflows and greater alignment across their vast networks—from initial sales to activating and assuring a service. These new capabilities accelerate ServiceNow’s roadmap for telcos supporting ServiceNow’s Telecom Network Inventory and Order Management for Telecom products, with a significant step toward providing closed loop automation for telecommunications networks.

“The power of ServiceNow is its ability to connect the entire telecommunications stack on a single platform,” said Rohit Batra, general manager, telecom, media, and technology industries at ServiceNow. “By adding Atrinet’s discovery and activation capabilities into our Telecom industry products, we're helping service providers manage the entire network lifecycle—driving productivity up and costs down.”

This acquisition reflects ServiceNow’s dedication to developing comprehensive, purpose-built industry solutions to help customers boost productivity, drive efficiencies, and accelerate business transformation. Through this acquisition, ServiceNow is enabling telcos to manage essential network processes including discovery, activation, field service, incident management, and initiating workflows, all from a single platform. Atrinet NetACE cloud-native product suite provides a low-code approach to automating all discovery, provisioning, and network management processes for telcos under an open network, unified management system.

In conjunction with the sale of NetACE to ServiceNow, Atrinet has become a certified ServiceNow Consulting and Implementation Partner. This partnership aims to deepen ServiceNow’s relationship with Atrinet and expand their offerings to provide implementation services to ServiceNow customers.

Atrinet is fully committed to honoring its existing contracts, ensuring the delivery of exceptional services.

"Atrinet’s mission to provide innovative operations and network automation solutions to the telco industry complements ServiceNow’s intelligent platform and commitment to driving business transformation for customers,” said Efi Levi, CEO and founder of Atrinet. “We look forward to a deep partnership with ServiceNow to help global telcos drive operational efficiencies, exceptional customer service and business growth.”

Atrinet was founded in 2013 and is headquartered in Hod-Hasharon, Israel. The acquisition of Atrinet’s NetACE™ network management and automation technology is the latest example of ServiceNow’s ongoing commitment to drive innovation in the telco industry. ServiceNow today announced it is partnering with NVIDIA to launch generative AI solutions for telcos, including Now Assist for Telecommunications Service Management (TSM), which will help telcos boost agent productivity, speed time to resolution, and enhance customer experiences. Segra, one of the largest independent fiber infrastructure bandwidth companies in the U.S., also announced it selected ServiceNow to launch its new SegraOne for Case and Incident Management. This solution will use ServiceNow Telecom Service Management to simplify everyday work and transform customer service and employee experiences by helping them resolve issues faster with AI-driven resolutions, increase transparency, and optimize omnichannel self-service.

ServiceNow expects to close the acquisition of Atrinet NetACE in Q2 2024. Financial terms of the deal will not be disclosed.

Use of forward-looking statements

This press release contains "forward-looking statements" about the expectations, beliefs, plans, intentions, and strategies relating to ServiceNow’s proposed acquisition of NetACE™ network management and automation technology from Atrinet. Such forward-looking statements include statements regarding future product capabilities and offerings and expected benefits to ServiceNow. Forward-looking statements are subject to known and unknown risks and uncertainties and are based on potentially inaccurate assumptions that could cause actual results to differ materially from those expected or implied by the forward-looking statements. If any such risks or uncertainties materialize or if any of the assumptions prove incorrect, our results could differ materially from the results expressed or implied by the forward-looking statements we make. We undertake no obligation, and do not intend, to update the forward-looking statements. Factors that may cause actual results to differ materially from those in any forward-looking statements include, without limitation, inability or delays in assimilating or integrating Atrinet’s technology into our platform; inability of ServiceNow or Atrinet to retain employees after the transaction closes; unanticipated obligations or liabilities related to Atrinet’s legacy business; potential adverse tax consequences; and disruption to our business and diversion of management attention and other resources. Further information on factors that could affect our financial and other results is included in the filings we make with the Securities and Exchange Commission from time to time.

About ServiceNow

ServiceNow (NYSE: NOW) makes the world work better for everyone. Our cloud‑based platform and solutions help digitize and unify organizations so that they can find smarter, faster, better ways to make work flow. So employees and customers can be more connected, more innovative, and more agile. And we can all create the future we imagine. The world works with ServiceNow^TM. For more information, visit: www.servicenow.com.

©2024 ServiceNow, Inc. All rights reserved. ServiceNow, the ServiceNow logo, Now, and other ServiceNow marks are trademarks and/or registered trademarks of ServiceNow, Inc. in the United States and/or other countries. Other company names, product names, and logos may be trademarks of the respective companies with which they are associated.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240225891388/en/

Media Relations

Brandon Brunson

512.680.4385

press@servicenow.com

Investor Relations

Darren Yip

925.388.7205

ir@servicenow.com

Source: ServiceNow

FAQ

What technology is ServiceNow acquiring from Atrinet?

ServiceNow is acquiring NetACE™ network management and automation technology from Atrinet.

How will the acquisition benefit telecommunications companies?

The acquisition will enable end-to-end network lifecycle management, drive efficiency, and provide stronger connectivity for telcos' workflows.

What challenges will the addition of Atrinet's NetACE technology address?

The addition of Atrinet's technology will address challenges related to network management efficiency, manual processes, and connectivity alignment across telcos' networks.

What capabilities will Atrinet's NetACE technology bring to ServiceNow's platform?

Atrinet's NetACE technology will provide network discovery, activation, field service, incident management, and workflow initiation capabilities on a single platform.

When is ServiceNow expected to close the acquisition of Atrinet NetACE?

ServiceNow expects to close the acquisition of Atrinet NetACE in Q2 2024.