Workday to buy pre-IPO Adaptive Insights in a $1.6 billion deal
Workday Inc. said Monday it has agreed to buy cloud-based business modernization company Adaptive Insights in a deal valued at $1.55 billion. The deal comes less than two weeks after Adaptive Insights set terms for its initial public offering, to raise up to $117.3 million, and which would value the company at up to $672.1 million. Workday said it expects the deal to close in the fiscal third-quarter, which ends Oct. 31, 2018. Workday said it expects to fund the purchase with cash on its balance sheet. Workday’s stock, which was still inactive in premarket trade, has run up 22% year to date, while the S&P 500 has gained 3.9%.