Why Workday Is Buying Peakon For $700 Million

By Amit Chowdhry ● Feb 2, 2021
  • Workday Inc (NASDAQ: WDAY) announced recently that it is buying Peakon ApS for $700 million in cash. These are the details about the deal.

Workday Inc (NASDAQ: WDAY) — a leader in enterprise cloud applications for finance and human resources — announced recently that it signed a definitive agreement under which it will buy Peakon ApS, an employee success platform that converts feedback into actionable insights. This deal is in an all-cash transaction for $700 million.

With Peakon, Workday is going to provide organizations with a continuous listening platform, including real-time visibility into employee experience, sentiment, and productivity, to help drive employee engagement and improve organizational performance.

As the events of this past year have changed, the world of work as business leaders grapple with uncertainty while needing to support employees like never before. And these circumstances have forced organizations to rethink HR strategies and continually adapt approaches to engage, support, and retain talent. This includes consistently cultivating a two-way dialogue to hear, understand, and respond to employees.

And in order to meet this moment, Workday and Peakon will come together with a continuous listening platform that will help customers capture real-time employee sentiment, facilitate ongoing feedback, and access personalized, prescriptive recommendations for actions.

The combination is going to merge intelligent technology from Peakon that determines and distributes surveys and information to the right person at the right time with the comprehensive employee insight in Workday to help leaders continually discover and respond to evolving employee feelings, needs, and behaviors. For example: customers can gain better insights and understanding on employee belonging — which will help them more confidently and consistently adjust plans to foster an inclusive workplace culture.

The deal is expected to close in the first quarter of Workday’s fiscal year 2022, ending April 30, 2021, subject to the satisfaction of customary closing conditions, including required regulatory approvals.

KEY QUOTES:

“Peakon is on the cutting edge of helping organizations turn employee insights into more connected teams and stronger organizations. Bringing Peakon into the Workday family will be very compelling to our customers – especially following an extraordinary past year that has magnified the importance of having a constant pulse on employee sentiment in order to keep people engaged and productive.”

— Aneel Bhusri, co-founder and co-CEO, Workday

“By joining forces with Workday, we’re able to accelerate our mission to help every employee drive the change they want to see. We share Workday’s passion for putting people at the center of technology, and together, we’ll be able to provide customers with the employee insights they need to support rapid change and growth.”

— Phil Chambers, co-founder and CEO, Peakon

“Listening to employees has become one of the most urgent strategies to build agility, responsiveness, and growth. Workday’s acquisition of Peakon will enable Workday customers to deploy a highly targeted and integrated employee listening strategy, addressing a top priority in employee experience today.” 

— Josh Bersin, global industry analyst