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Tuesday 05 November 2019

Workday sources Scout for $540m

logoE-sourcing and procurement specialist Scout RFP will be the latest cloud company to join Workday as the latter invests to build up its procurement and supplier engagement capabilities. Workday will pay $540m in cash for Scout with the transaction expected to close towards the end of January, the end of Workday’s financial year.

Scout is already well known to Workday: Workday Ventures invested in 2018 and it is also an existing Workday software partner. Founded in 2014, the startup has raised $60m in funding and grown to 160 staff with 240 customers on its books. The value to Workday is the strategic sourcing functionality that will join with its existing Procurement and Inventory  products to fill out gaps in its source-to-pay capability. In a wider context, the acquisition and emphasis on sourcing and supplier engagement also highlights the importance of the supplier relationship – as regular HotViews readers know, TechMarketView’s theme for 2019 is “The Year of the Relationship”.

Scout is Workday’s second acquisition since the $1.55bn business planning Adaptive Insights move of June 2018 (its largest acquisition to date). The other was the July 2019 acquisition of 2016 startup Trusted Key (transaction details were not disclosed). It was an interesting one because it was in the business of identity authentication, using blockchain. Workday’s aim is to use it to move authentication credentials like degrees, licenses and certifications, onto the blockchain.

Posted by: Angela Eager

Tags: acquisition   cloud   software  

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