Enterprise cloud management company Workday will acquire VNDLY, a cloud provider and vendor management provider, for $510 million.
The recent acquisition of Workday is in line with the technology company’s goal of merging optimization tools for internal and external, hourly, contingent and outsourced workers, with the goal of providing holistic support for talent management, costs, planning and compliance.
VNDLY currently has certified integrations with Workday Financial Management and Workday Human Capital Management. The acquisition of VNDLY outlines the following objectives:
- The two companies will have a single verification system to manage the entire workforce of their customers.
- Provide visibility tools to optimize costs and workers mix.
- Workday with VNDLY can provide an end-to-end process for requisitions, statements of work, onboarding, invoicing and payroll.
- Integration will include compliance and security tools.
Workday will invest in VNDLY’s managed service provider network and support the integration of third-party providers.
Workday recently posted Q3 revenue of $1.33 billion, surging 20% from 2020. Net income for Q3 was 17 cents a share and $1.10 a share non-GAAP. Earlier projections from analysts pegged Q3 revenue of $1.31 billion and non-GAAP earnings of 86 cents a share.
Workday’s Q4 outlook projected subscription revenue of $1.216 billion to $1.218 billion, representing growth of 21%. For fiscal 2022, Workday expects subscription revenue between $4.533 billion to $4.535 billion.