PLEASANTON — Workday has struck a deal to pay nearly $1.6 billion for Adaptive Insights, an agreement involving Bay Area tech companies that short circuits Adaptive’s recently proposed initial public stock offering.
Workday is a cloud-based platform that offers human resources and other back-office applications, while Adaptive Insights is a cloud-based platform that helps modernize business planning.
Pleasanton-based Workday said it would pay $1.55 billion to buy Palo Alto-based Adaptive Insights. The deal also obliges Workday to assume $150 million in unvested equity that’s been issued to Adaptive employees.
It was just a few weeks ago, on May 17, that Adaptive Insights filed for an IPO, according to a regulatory filing with the Securities and Exchange Commission. On June 1, Adaptive stated that the IPO would raise $115 million, SEC documents show.
“Adaptive Insights is an industry leader with its Business Planning Cloud platform” said Aneel Bhusri, co-founder and chief executive officer of Workday. “We will help customers accelerate Adaptive’s finance transformation in the cloud.”
The deal is expected to be complete sometime during the July-through-September period.
“Joining forces with Workday accelerates our vision to drive holistic business planning and digital transformation for our customers,” said Tom Bogan, Adaptive’s CEO.
Workday intends to integrate Adaptive’s business planning cloud services into its financial planning products while Workday continues to improve its workplace planning services.
“Together, Workday and Adaptive Insights will enable customers to better plan, execute, and analyze across the enterprise all in one system,” the companies said in a prepared release.
