Workday is handing over US$700 million (AU$915.5 million) in cash to acquire employee experience monitoring platform Peakon. The company plans to create a continuous listening platform for enterprises and organisations, which is capable of capturing employee sentiments and feedback.
Workday states that business leaders are acutely aware of the challenges of supporting employees, particularly over the last year. Organisations have changed HR strategies and tailored approaches to engage, support, and retain talent, including new ways to listen to and respond to employees.
The Peakon acquisition will enable Workday to offer a service for organisations that can learn about and discover employee feelings, behaviours, and requirements. This is done through the capture of real-time employee sentiment, facilitate ongoing feedback, and access personalised, prescriptive recommendations for actions. The combination will merge intelligent technology from Peakon that determines and distributes surveys and information to the right person at the right time,
As an example, the continuous listening platform will enable users to gain better insights and understanding of employee belonging, which will help them more confidently and consistently adjust plans to foster an inclusive workplace culture.
Workday cofounder and co-CEO Aneel Bhusri says, "Peakon is on the cutting edge of helping organisations turn employee insights into more connected teams and stronger organisations.
Bhusri believes that the acquisition will appeal to customers that need to keep a 'constant pulse' on employee sentiment in their company, for the purpose of ensuring that employees remain both engages and productive.
Peakon cofounder and CEO Phil Chambers is equally positive about the acquisition, saying that the company will be able to help every employee 'drive the change they want to see'.
"We share Workday's passion for putting people at the centre of technology, and together, we'll be able to provide customers with the employee insights they need to support rapid change and growth.
Under the terms of the definitive agreement, Workday will acquire Peakon for consideration of approximately $700 million in cash, subject to adjustments.
According to Workday, the transaction 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.
Peakon has worked with customers including Capgemini, The Adecco Group, and Staples. The company was founded in Denmark.
Workday's legal advisors are Orrick and Bech-Bruun. Peakon and its shareholders' legal advisors are Wilson Sonsini Goodrich - Rosati, Osborne Clarke, and Highbridge.
