8-KAcquisitions & DispositionsOther EventsExhibits & Filings

Workday, Inc. 8-K Report, Acquisition Completed (Aug 1, 2018)

Filed August 1, 2018For Securities:WDAY

Summary

Workday, Inc. has officially completed its acquisition of Adaptive Insights, Inc. for approximately $1.55 billion. This strategic move, finalized on August 1, 2018, involved a merger where Adaptive Insights became a wholly-owned subsidiary of Workday. The consideration includes cash payments and the assumption of outstanding equity awards, with additional restricted stock unit awards of up to $50 million planned for continuing Adaptive Insights employees. This acquisition is significant for Workday as it integrates Adaptive Insights' robust financial planning and analysis (FP&A) capabilities into Workday's existing suite of enterprise cloud applications. Investors should monitor how this integration impacts Workday's product offerings, competitive positioning in the HR and finance software market, and its future financial performance, particularly revenue growth and profitability, following this substantial investment.

Key Highlights

  • 1Workday, Inc. completed the acquisition of Adaptive Insights, Inc. on August 1, 2018.
  • 2The total acquisition cost is approximately $1.55 billion.
  • 3Adaptive Insights has been merged and is now a wholly-owned subsidiary of Workday.
  • 4The acquisition consideration includes cash and the assumption of Adaptive Insights' equity awards.
  • 5Workday plans to issue up to $50 million in new restricted stock unit awards to retain key Adaptive Insights employees.
  • 6The transaction was structured as a merger with Armadillo Acquisition Sub, Inc., a Workday subsidiary.
  • 7Detailed financial statements and pro forma information for the acquired business will be filed in an amendment within 71 days.

Frequently Asked Questions

While not explicitly detailed in this 8-K, the acquisition of Adaptive Insights, a leader in financial planning and analysis (FP&A) software, is expected to significantly enhance Workday's financial management suite. This move aims to provide customers with a more comprehensive solution for finance and HR, strengthening Workday's competitive position in the enterprise cloud applications market.

The acquisition was financed through a combination of cash payments and the assumption of Adaptive Insights' outstanding equity awards (vested stock options and warrants). Workday also plans to issue new restricted stock unit awards valued at up to $50 million to certain continuing employees, which represents an additional investment in retaining talent.

The full financial statements of the acquired business and pro forma financial information will be filed by amendment to this 8-K no later than 71 days after August 1, 2018. Investors should look for these filings to gain a clearer picture of Adaptive Insights' contribution to Workday's revenue, expenses, and overall profitability.

The aggregate consideration for the acquisition of Adaptive Insights is approximately $1.55 billion.