ServiceNow's (NOW) planned acquisition of cloud identity-security firm Veza is a "logical step" in accelerating AI adoption and expanding its security portfolio, Truist Securities said Tuesday.

Truist noted that the deal would address security challenges tied to AI rollouts, emphasizing Veza's identity and access management platform, which spans SaaS, on-premise systems, developer environments, and cloud infrastructure.

The investment firm highlighted Veza's Authorization Graph, Open Authorization API, and Non-Human Identities capabilities as supporting agentic AI adoption.

Truist also pointed to Veza's recent growth, including more than doubling annual recurring revenue in 2024 and achieving nearly 150% net-revenue retention, as well as its workforce of 190+ employees and support for millions of users and over 20 billion permissions.

ServiceNow Ventures invested in Veza in 2023, and the companies share more than 250 joint customers, which Truist said should ease integration.

Truist maintained its buy rating and $1,200 price target on ServiceNow, emphasizing the strategic benefit of the acquisition in accelerating AI deployments rather than directly competing with large identity-security vendors.

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