Adaptive Insights, a US-based business planning software provider backed by enterprise software producer Salesforce, agreed to an acquisition by cloud-based human resources management platform Workday for $1.55bn yesterday.
The transaction includes $150m in unvested equity that will be issued to Adaptive Insights staff. The deal is expected to close in Workday’s third quarter ending October 31 and is subject to customary closing conditions.
Founded in 2003 as Adaptive Planning, Adaptive Insights operates a cloud-based platform that allows organisations to build models of their operations and collaborate on planning while analysing performance data.
Workday will integrate Adaptive Insights’ platform into its own suite of applications. Tom Bogan, chief executive of Adaptive Insights, will continue to lead the team and will report to Aneel Bhusri, co-founder and chief executive of Workday.
The acquisition comes just three weeks after Adaptive Insights filed for a $100m initial public offering. The filing showed the company had made a $42.7m net loss from $107m in revenue in the year leading up to the end of January 2018.
Adaptive Insights has raised approximately $176m in funding to date, including $45m in a round featuring Salesforce that closed in 2013.
Bessemer Venture Partners (BVP) led the 2013 round, which featured RBC Ventures, an investment unit of financial services firm Royal Bank of Canada, as well as Onset Ventures, Norwest Venture Partners (NVP), Cardinal Venture Capital, Monitor Ventures and angel investor Jeff Epstein.
Growth equity firm JMI Equity then led a $75m round in 2015 that also included NVP, Onset, BVP, Cardinal Venture Capital, Monitor Ventures and Information Venture Partners.
Last month’s securities filing related to the IPO plans revealed that neither Salesforce nor RBC owned more than 5% in Adaptive Insights, whose largest shareholders are Onset (17.9%), NVP (16.5%), BVP (11.7%), Information Venture Partners (11.2%), Cardinal (8.5%), JMI (6.4%) and Monitor Ventures (6.3%).
Bogan said: “Joining forces with Workday accelerates our vision to drive holistic business planning and digital transformation for our customers.
“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.”