Workday announced this week that it is purchasing Adaptive Insights in a deal valued at $1.55 billion.
Adaptive Insights, a provider of the cloud platform for business planning, was expected to raise up to $123 million in its Initial Public Offering, valuing the company at more than $600 million. The IPO was scheduled for later this week.
Workday aims to fund the deal with cash from its balance sheet and assume about $150 million in unvested equity issued to Adaptive Insights employees. The deal is expected to close in Workday’s third quarter, ending October 31, 2018.
Allen & Company LLC is serving as financial adviser to Workday, and Fenwick & West LLP is its legal adviser.
On the other hand, Morgan Stanley & Co. LLC is acting as financial adviser to Adaptive Insights, and Cooley LLP is its legal adviser.
With the move, Workday is planning to add Adaptive Insights to its finance and human resources wares as well as its efforts to offer planning. Workday will outline a roadmap to bring data models and user experience together over time.
At Workday’s most recent earnings conference call, Bhusri said:
“We will sell a subset of financials with Planning that would include consolidation and reporting. But really, the predominant model is Planning, either with HR or Planning either with financials. And frankly, it’s a compelling application in both cases. In the HR side, we’ve had very significant uptake and interests on the workforce Planning side. And on financials, I’d argue Planning is the strategic application now for the CFO’s office, and it drives the executions. I’d say the two strategic pieces are Planning and the analysis piece with Prism Analytics. And those two together have definitely created a lot more interest in the Workday financial suite.”
“I am excited to welcome the Adaptive Insights team to Workday and look forward to coming together to continue delivering industry-leading products that equip finance organizations to make even faster, better business decisions to adapt to change and to drive growth,” Bhusri said in a press release announcing the purchase.