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Workday will acquire Scout RFP in an all cash transaction for $540 million. The deal is expected to close by January 31, 2020 – the fourth quarter of Workday’s fiscal year.

Workday is a cloud solutions provider for financial and human resources. Scout RFP is a cloud-based platform for sourcing and supplier management, focused on strengthening the supplier and stakeholder relationship.

The startup was founded in 2014 and is based in San Francisco. Prior to being acquired by Workday, Scout RFP was a Workday Ventures portfolio company and a Workday Software Partner.

The Scout RFP platform is used by teams looking to optimise spend, according to CEO of Workday Aneel Bhusri.

A source-to-pay solution

He says that the two companies will work together to deliver a modern source-to-pay solution targeted towards the spend management market.

The solution will enable customers to better plan, execute, analyse and extend spend within one system, Bhusri says.

The offering proposes to advance procurement organsiation to deliver better business outcomes, including reducing spend, maximising engagement with stakeholders and advancing policy compliance.

A shared aim

The source-to-pay solution contributes to Workday and Scout RFP’s shared goal of leading the way in what they’re calling ‘strategic sourcing’.

Scout RFP CEO Alex Yakubovich says, “In addition to our common passion for innovative technologies, our two companies also share a commitment to employee and customer satisfaction, which will enable us to advance our vision to transform strategic sourcing.”

In prior years, Scout RFP has raised $60.3 million in venture capital funding, including a significant sum of $15.5 million in June 2017.

Cooley LLP is serving as legal advisor to Workday, and Fenwick & West is serving as Scout RFP’s legal advisor.

Workday will hold a conference to review the financial results for the company on December 3, 2019, at the end of the third fiscal quarter.