Workday is already well-known as a leading provider of enterprise cloud applications for finance and human resources. Now, the company is looking to expand its reach even further with its agreement to acquire cloud software provider Adaptive Insights. The deal is valued at about $1.55 billion.

Workday plans to combine the Adaptive Insights Business Planning Cloud with its suite of applications for finance and HR. Adaptive Insights will continue to be led by CEO Tom Bogan, reporting to Aneel Bhusri, co-founder and CEO of Workday.

“Adaptive Insights is an industry leader with its Business Planning Cloud platform, and together with Workday, we will help customers accelerate their finance transformation in the cloud," Bhusri said in a statement.

Aneel Bhusri, co-founder and CEO of Workday

Under the terms of the agreement, Workday will acquire all of the outstanding shares of Adaptive Insights, including the assumption of about $150 million in unvested equity issued to Adaptive Insights employees.

See Also Workday announces first data-as-a-service offering

The transaction is expected to close in the third quarter of Workday's fiscal year 2019, ending Oct. 31, 2018, subject to the satisfaction of customary closing conditions. Workday expects to fund the consideration with cash from its balance sheet.

“Joining forces with Workday accelerates our vision to drive holistic business planning and digital transformation for our customers,” Bogan said in a statement. “Most importantly, both Adaptive Insights and Workday have an employee-first and customer-centric approach to developing enterprise software that will only increase the power of the combined companies.”

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