Sept 16 (Reuters) - Workday said on Tuesday it would buy AI firm Sana for about $1.1 billion, underscoring growing consolidation in the HR software sector while companies look to integrate the booming technology into their products in response to evolving customer demands.
Just last month, private equity firm Thoma Bravo agreed to buy Workday rival Dayforce for $12.3 billion. Paychex also announced the acquisition of rival Paycor for $4.1 billion at the start of the year, while Automatic Data Processing purchased WorkForce Software for about $1.2 billion in 2024.
Sana, founded in 2016, allows companies to create AI agents to help automate specific tasks. As a part of Workday, Sana will continue to develop such tools, the company said.
Workday's customers rely on its single, cloud-based platform, which offers applications to manage key services such as recruitment, payroll, accounting and auditing.
Under the latest deal, Workday's customers, including hiring managers, will be able to generate tailored dashboards and automate the entire performance review process, among other functions, with the help of Sana's tech.
Workday's buyout of Sana follows its announcement last month to purchase Paradox to gain access to an AI-powered talent acquisition suite to help customers find, hire and onboard employees more efficiently.
The latest transaction is expected to close in the fourth quarter of Workday's fiscal year 2026, ending January 31. Allen & Company is the financial adviser to Workday.
Reporting by Arsheeya Bajwa in Bengaluru; Editing by Shilpi Majumdar
Source: Reuters