Combination of Two Leaders to Provide Customers
with Leading Cloud System to Accelerate Finance and Business
Transformation
Workday, Inc. (NASDAQ:WDAY), a leader in enterprise cloud
applications for finance and human resources, and Adaptive
Insights, a leading cloud-based platform for modernizing business
planning, have signed a definitive agreement under which Workday
will acquire all of the outstanding shares of Adaptive Insights for
approximately $1.55 billion including the assumption of
approximately $150 million in unvested equity issued to Adaptive
Insights employees.
Comments on the News “Adaptive Insights is an
industry leader with its Business Planning Cloud platform, and
together with Workday, we will help customers accelerate their
finance transformation in the cloud," said Aneel Bhusri, Co-Founder
and CEO, Workday. “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.”
“Joining forces with Workday accelerates our vision to drive
holistic business planning and digital transformation for our
customers,” said Tom Bogan, CEO, Adaptive Insights. “Most
importantly, both Adaptive Insights and Workday have an
employee-first and customer-centric approach to developing
enterprise software that will only increase the power of the
combined companies.”
Driving Finance Transformation TogetherToday’s
dynamic business environment requires leaders across an
organization to continuously collaborate on planning to adapt to
business changes while driving growth and performance.
To further empower organizations to leverage next-generation
planning as their strategic advantage, Workday intends to combine
the Adaptive Insights Business Planning Cloud – used by thousands
of customers of all sizes around the world – with its leading suite
of applications for finance and HR. Together, Workday and Adaptive
Insights will enable customers to better plan, execute, and analyze
across the enterprise all in one system – the leading cloud
platform to drive their financial and business transformations.
Adaptive Insights will continue to be led by CEO Tom Bogan,
reporting to Aneel Bhusri. Under their leadership, Workday will
further power its financial planning products with Adaptive
Insights Business Planning Cloud, while continuing the current
roadmap and strategy for its workforce planning products.
Details Regarding Proposed Acquisition of Adaptive
InsightsUnder the terms of the definitive agreement,
Workday will acquire all of the outstanding shares of Adaptive
Insights for approximately $1.55 billion including the assumption
of approximately $150 million in unvested equity issued to Adaptive
Insights employees. The transaction is expected to close in the
third quarter of Workday's fiscal year 2019, ending October 31,
2018, subject to the satisfaction of customary closing conditions.
Workday expects to fund the consideration with cash from its
balance sheet.
Allen & Company LLC is serving as exclusive financial
advisor to Workday, and Fenwick & West LLP is serving as its
legal advisor. Morgan Stanley & Co. LLC is acting as financial
advisor to Adaptive Insights, and Cooley LLP is serving as its
legal advisor.
Management Conference CallWorkday and Adaptive
Insights will host a conference call to discuss this transaction at
6:00 a.m. PT / 9:00 a.m. ET on June 11, 2018. A live dial-in is
available domestically at (833) 261-9369 and internationally at
(352) 672-9806, passcode 7793755. A live audiocast of the
event will be available on the Workday Investor Relations site. A
replay will be available at (855) 859-2056 or (404) 537-3406 until
12:00 a.m. PT / 3:00 a.m. ET on September 10, 2018.
Additional Information
- Please visit the Workday Blog for additional perspective and an
FAQ from Workday Chief Products Officer Petros Dermetzis
- Please visit the Adaptive Insights Blog for additional
perspective from Adaptive Insights Founder Rob Hull
About WorkdayWorkday is a leading provider of
enterprise cloud applications for finance and human resources.
Founded in 2005, Workday delivers financial management, human
capital management, and analytics applications designed for the
world’s largest companies, educational institutions, and government
agencies. Organizations ranging from medium-sized businesses to
Fortune 50 enterprises have selected Workday.
About Adaptive InsightsAdaptive Insights powers
a new generation of business planning, transforming the planning
process into a strategic advantage for more than 3,800
organizations around the world with powerful modeling that’s easy
for everybody who plans. The Adaptive Insights Business Planning
Cloud platform enables organizations of all sizes to adapt to
changing business conditions with confidence and agility. Adaptive
Insights is headquartered in Palo Alto, CA.
Forward-Looking StatementsThis press release
contains forward-looking statements related to Workday, Adaptive
Insights, and the acquisition of Adaptive Insights by Workday that
are subject to risks, uncertainties, and assumptions. If the risks
materialize or assumptions prove incorrect, actual results could
differ materially from the results implied by these forward-looking
statements. Forward-looking statements in this communication
include, among other things, statements about the potential
benefits and effects of the proposed transaction, Workday's plans,
objectives, expectations and intentions, and the anticipated timing
of closing of the proposed transaction. Risks include, but are not
limited to: (i) the risk that the transaction may not be completed
in a timely manner or at all; (ii) failure to achieve the expected
benefits of the transaction; (iii) Workday’s ability to implement
its plans, objectives and other expectations with respect to
Adaptive Insights’ business; (iv) negative effects of the
announcement or the consummation of the transaction on Workday’s
business operations, operating results or share price; (v)
significant transaction costs; (vi) unknown liabilities; (vii)
breaches in our security measures, unauthorized access to our
customers' data or disruptions in our data center operations; (vii)
our ability to manage our growth effectively; (ix) competitive
factors, including pricing pressures, industry consolidation, entry
of new competitors and new applications, and marketing initiatives
by our competitors; (x) the development of the market for
enterprise cloud services; (xi) acceptance of our applications and
services by customers; (xi) adverse changes in general economic or
market conditions; (xii) delays or reductions in information
technology spending; (xiv) changes in sales, which may not be
immediately reflected in our results due to our subscription model,
and (xv). additional risks included in our filings with the
Securities and Exchange Commission (SEC), including our Form 10-Q
for the fiscal quarter ended April 30, 2018 and our future reports
that we may file with the SEC from time to time, which could cause
actual results to vary from expectations. Workday assumes no
obligation to, and does not currently intend to, update any such
forward-looking statements after the date of this release.
Any unreleased services, features, or functions referenced in
this document, our website, or other press releases or public
statements that are not currently available are subject to change
at Workday's discretion and may not be delivered as planned or at
all. Customers who purchase Workday services should make their
purchase decisions based upon services, features, and functions
that are currently available.
© 2018. Workday, Inc. All rights reserved. Workday and the
Workday logo are registered trademarks of Workday, Inc. All other
brand and product names are trademarks or registered trademarks of
their respective holders.
Investor Relations Contact:Michael Magaro,
Workday +1 (925) 379-6000Michael.Magaro@Workday.com
Media Contacts:Jeff Shadid, Workday+1 (405)
834-7777Jeff.Shadid@Workday.com
Diane Orr, Adaptive Insights+1 (650)
422-7334dorr@adaptiveinsights.com
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