# Decagon in acquisition talks with ServiceNow after hiring bank

Digest AI · Enterprise & Industry · published 2026-10-13T17:55:52Z

Canonical: https://digestai.news/story/decagon-in-acquisition-talks-with-servicenow-after-hiring-bank

## Summary

Decagon, an AI customer service agent startup valued at $4.5 billion earlier this year, has hired a bank to explore acquisition interest. Early talks include cloud software giant ServiceNow and other potential buyers, according to sources familiar with the matter. If no deal emerges, Decagon may pursue a new funding round instead.

Founded in July 2023 by Jesse Zhang and Ashwin Sreenivas, Decagon automates customer support for enterprise clients like Delta, Snapchat, and Ticketmaster. It has raised over $400 million from investors including Andreessen Horowitz and Bain Capital Ventures. The company competes with Sierra, valued at $15.8 billion earlier this year. ServiceNow’s interest follows its recent stock rebound after AI-driven investor concerns and a $7 billion acquisition of Armis.

## Key points

- Decagon valued at $4.5B earlier this year, now in acquisition talks with ServiceNow and others
- Company raised $400M from investors like Andreessen Horowitz and Bain Capital Ventures
- ServiceNow’s interest follows stock recovery after AI-driven SaaS-pocalypse fears and $7B Armis deal

## Why it matters

A potential acquisition would accelerate AI-driven enterprise software consolidation, with ServiceNow seeking to bolster its AI capabilities amid market volatility.

## Sources

1. [Sources: Decagon, which offers AI customer service agents and was last valued at $4.5B, hired a bank and is in early talks with buyers, including ServiceNow](https://businessinsider.com/ai-agent-company-decagon-hired-investment-bank-acquisition-interest-2026-10) (businessinsider.com, 2026-10-13)

## Cite

Digest AI, "Decagon in acquisition talks with ServiceNow after hiring bank", 13 October 2026, https://digestai.news/story/decagon-in-acquisition-talks-with-servicenow-after-hiring-bank

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