Comprehensive M&A data with integrated detailed company information
Workday makes USD 1.55bn offer for Adaptive Insights
Posted on Tuesday, 12 June 2018 07:20
Workday has agreed to acquire cloud-based business planning and financial modelling tools provider Adaptive Insights for USD 1.55 billion in a deal that comes less than a month after the target filed a prospectus for an initial public offering (IPO).
The Nasdaq-listed buyer is paying a large premium for the group in a bid to derail plans of a flotation, which were expected to take place later this week.
Workday has also agreed to assume USD 150.00 million in unvested equity issued to Adaptive Insights employees.
The deal is subject to the usual raft of closing conditions and is expected to complete in the third quarter of the acquiror’s fiscal 2019 year.
Workday plans to finance the transaction with cash from its balance sheet and will significantly benefit from the combination of two leaders now providing cloud systems to boost customer’s finance and business needs.
Adaptive Insights filed preliminary documents to go public in May and was expected to raise USD 123.00 million in the IPO this week, which would have valued the company at over USD 600.00 million.
An article by Techcrunch observed that this is not the first time as of late that a buyer has swooped in at the last minute to acquire a group that had filed for a flotation.
PayPal agreed to purchase iZettle just after it issued documents to regulators regarding an IPO, while Microsoft bought Skype in 2011 in a similar situation as eBay was awaiting approval to spin-off the social media platform via a listing.
Founded in 2003, Adaptive Insights claims to be a leader in the field of cloud corporate performance management and offers a fully-integrated platform of business intelligence, which it provides to 3,500 companies across 85 countries worldwide.
In the preliminary IPO document filed with the US Securities and Exchange Commission, the company posted its financials for the 12 months to 31st January 2018, where it generated a 30.2 per cent increase in revenue to USD 106.51 million.
However, Adaptive Insights is still bleeding red ink with a net loss of USD 42.67 million in fiscal 2017, compared to a loss of USD 44.72 million a year earlier.
© Zephus Ltd