Workday values self at $4.5 billion

Workday, the cloud-based HR and finance application provider launched by the co-founders of PeopleSoft, priced its shares at $28 ahead of its stock market launch later today.

The company now expects to raise $637 million from the IPO, up from the $400 million it announced its S1 filing in August.

The price puts the company’s market capitalisation at $4.5 billion – around the same size as middleware vendor TIBCO Software or analyst company Gartner.

Founded in 2005, Workday has attracted a number of high profile customers to its HR platform, including Aviva Europe, Google and Hewlett-Packard.

If successful, the IPO is likely to solidify the perception that cloud-based applications are the future of enterprise software.

That is a perception that the likes of Oracle and SAP are no longer fighting. In what appeared to be defensive moves against the rise of Workday, both companies have acquired cloud-based HR providers in the last year, SuccessFactors and Taleo respectively.

Avatar photo

Ben Rossi

Ben was Vitesse Media's editorial director, leading content creation and editorial strategy across all Vitesse products, including its market-leading B2B and consumer magazines, websites, research and...

Related Topics