- Workday recently announced that it is buying Scout RFP for $540 million. These are the details about the deal.
Workday — a leader in enterprise cloud applications for finance and human resources — recently announced it is buying Scout RFP in an all-cash transaction for $540 million. Scout RFP is a leading cloud-based platform for strategic sourcing and supplier engagement.
“Scout RFP is an industry leader that is loved by procurement teams who are undergoing a significant shift to better optimize spend,” said Workday co-founder and CEO Aneel Bhusri. “Together, we will deliver a modern source-to-pay solution that accelerates our momentum in the spend management market and expands how customers can plan, execute, analyze, and extend in one system.”
The leading procurement organizations are partnering with lines of business to maximize opportunities to support growth and drive cost savings to impact the bottom line. And with Scout RFP, Workday may provide organizations with a comprehensive source-to-pay solution with a high-quality strategic sourcing offering for transforming the procurement organization and delivering better business outcomes, including a reduction in spending, greater policy compliance, and maximum engagement across key stakeholders.
“As a Workday Ventures portfolio company and Workday Software Partner, we’ve been incredibly impressed with Workday’s team, culture, customer focus, and products,” added Scout RFP CEO Alex Yakubovich. “In addition to our common passion for innovative technologies, our two companies also share a commitment to employee and customer satisfaction, which will enable us to advance our vision to transform strategic sourcing.”
What Scout RFP does is provide an intuitive and modern cloud-based platform for strategic sourcing and supplier engagement that makes sourcing simpler, smarter, and more efficient. And hundreds of customers use Scout RFP to source faster, drive efficiency, and maximize the value of supplier relationships.
Back in January, Scout RFP raised $33 million in funding. Workday Ventures made a strategic investment in Scout RFP as part of the round. And Scout joined the Workday Software Partner program and collaborated on go-to-market and product initiatives benefiting their joint customers, including integrating Scout’s strategic sourcing platform with Workday Procurement (part of the Workday Financial Management suite).
Back then, Scout RFP said that it saw 2x growth in annual recurring revenue and the company added almost 100,000 users to its platform. Some of Scout’s customers include Beam Suntory, Conagra, Gilead, VMware, Starbucks, and Zebra Technologies.
The acquisition is expected to close in the fourth quarter of Workday’s fiscal year 2020 ending January 31, 2020 subject to customary closing conditions, including required regulatory approval. And Cooley LLP is serving as legal advisor to Workday and Fenwick & West is serving as Scout RFP’s legal advisor.