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ServiceNow is acquiring Canadian AI service startup Element AI one more and bites the dust.

ServiceNow is acquiring Canadian AI service startup Element AI one more and bites the dust. 

Since its launch in 2016, one of Canada's superstar startups has been scooped by American software giant Service Now, to raise US $ 102 million in Series A and open offices in five cities across North America, Europe and Asia. 

Terms of the deal have not been disclosed. 

When the money was last raised in September 2019, Element AI was valued at between $ 600 million and $ 700 million. 

Being disappointed to see another homemade gem acquired by a firm outside the Great White North, while ServiceNow says the acquisition of Element AI would greatly benefit the Canadian market. 

According to ServiceNow's November 30 press release, ServiceNow's AI Innovation Hub in Canada follows a similar investment as ServiceNow to build technology development centers in Chicago, Hyderabad, Kirland, Wash, San Diego and Silicon Valley. Jean-François Gagné, founder and chief executive officer of Element AI, reiterated the company's vision, aiming to create and provision AI-based IT services for enterprises, many of which were not "tech" companies by nature. 

"The approach of Element AI has always been to define how companies use AI to make people work smarter," said Gagan.

 “ServiceNow is leading the workflow revolution and we are inspired by its aim to make the world of work work better for people. 

ServiceNow is the clear partner to apply our talent and technology to the most important challenges facing us today. 

"A spokesperson for ServiceNow told TechCrunch that the focus of the acquisition was to" acquire technical talent and AI capabilities ", and that ServiceNow would begin to re-platform some of the Montreal startup's capabilities.

 "We expect to wind up most of Element AI's customers after the deal is closed," the spokesperson said. The acquisition is expected to be completed by early 2021.

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