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Workday (WDAY) Completes Peakon Buyout: Major Takeaways
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Workday (WDAY - Free Report) recently announced that it concluded the buyout of Peakon ApS. Following the news, shares moved up 6.4% on Mar 9 and closed at $245.92.
Post the acquisition, Peakon will operate as a Workday company and will report to the company’s vice chairman Tom Bogan. The company had announced the Peakon acquisition in January 2021 for a price of $700 million in an all cash deal.
Denmark-based Peakon is a Human Resource (HR) company that is focused on improving employee engagement by helping to convert employee feedback into actionable insights. Peakon’s client base includes the likes of The Adecco Group, Delivery Hero, Capgemini and Staples.
The acquisition is expected to further consolidate Workday’s position in the human capital management (HCM) market and instil investors’ optimism. Notably, shares of Workday, which carries a Zacks Rank #2 (Buy), have increased 73.2% in the past year compared with the industry’s rally of 112.8%.
With the Peakon acquisition, Workday will be able to offer its clients a data-oriented platform that can provide visibility into employee experience, sentiment and productivity in real time to augment employee engagement and in turn, overall business performance.
Moreover, with a rapidly evolving workspace environment, Peakon’s solutions will help clients to assess changes in employee experiences across different types of work environment like remote, frontline or hybrid workspace. It will provide managers with tools to better align development opportunities with employee goals and objectives.
Peakon marks latest acquisition by Workday, which earlier acquired companies like Scout RFP (2019), TrustedKey (2019) and Adaptive Insights (2018) to boost its position in the HCM market.
Adaptive Insights, a provider of cloud platform for business planning, is one of its biggest acquisitions for the company. Workday purchased Adaptive Insights for $1.55 billion.
Workday’s revenue growth continues to be driven by high demand for its HCM and financial management solutions.
Markedly, the company witnessed rapid deployment of HCM solutions in the last reported quarter, which was selected by Cox Enterprises, First Rank Bank, Nike, ABB, Anthem, Cognizant Worldwide, among others. Some of the important go-lives in the last reported quarter included Caterpillar, Cisco Systems, Comcast Cable, PF Changs and Spectrum Health.
Workday is also witnessing momentum for its solutions, including Workday Adaptive Planning, Prism Analytics and Spend Management.
Nevertheless, stiff competition in the HCM and financial management software market from the likes of Oracle (ORCL - Free Report) , SAP (SAP - Free Report) and Automatic Data Processing (ADP - Free Report) could limit margin expansion for Workday.
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Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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Workday (WDAY) Completes Peakon Buyout: Major Takeaways
Workday (WDAY - Free Report) recently announced that it concluded the buyout of Peakon ApS. Following the news, shares moved up 6.4% on Mar 9 and closed at $245.92.
Post the acquisition, Peakon will operate as a Workday company and will report to the company’s vice chairman Tom Bogan. The company had announced the Peakon acquisition in January 2021 for a price of $700 million in an all cash deal.
Denmark-based Peakon is a Human Resource (HR) company that is focused on improving employee engagement by helping to convert employee feedback into actionable insights. Peakon’s client base includes the likes of The Adecco Group, Delivery Hero, Capgemini and Staples.
Workday, Inc. Price and Consensus
Workday, Inc. price-consensus-chart | Workday, Inc. Quote
The acquisition is expected to further consolidate Workday’s position in the human capital management (HCM) market and instil investors’ optimism. Notably, shares of Workday, which carries a Zacks Rank #2 (Buy), have increased 73.2% in the past year compared with the industry’s rally of 112.8%.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peakon Acquisition Augurs Well for Workday
With the Peakon acquisition, Workday will be able to offer its clients a data-oriented platform that can provide visibility into employee experience, sentiment and productivity in real time to augment employee engagement and in turn, overall business performance.
Moreover, with a rapidly evolving workspace environment, Peakon’s solutions will help clients to assess changes in employee experiences across different types of work environment like remote, frontline or hybrid workspace. It will provide managers with tools to better align development opportunities with employee goals and objectives.
Peakon marks latest acquisition by Workday, which earlier acquired companies like Scout RFP (2019), TrustedKey (2019) and Adaptive Insights (2018) to boost its position in the HCM market.
Adaptive Insights, a provider of cloud platform for business planning, is one of its biggest acquisitions for the company. Workday purchased Adaptive Insights for $1.55 billion.
Workday’s revenue growth continues to be driven by high demand for its HCM and financial management solutions.
Markedly, the company witnessed rapid deployment of HCM solutions in the last reported quarter, which was selected by Cox Enterprises, First Rank Bank, Nike, ABB, Anthem, Cognizant Worldwide, among others. Some of the important go-lives in the last reported quarter included Caterpillar, Cisco Systems, Comcast Cable, PF Changs and Spectrum Health.
Workday is also witnessing momentum for its solutions, including Workday Adaptive Planning, Prism Analytics and Spend Management.
Nevertheless, stiff competition in the HCM and financial management software market from the likes of Oracle (ORCL - Free Report) , SAP (SAP - Free Report) and Automatic Data Processing (ADP - Free Report) could limit margin expansion for Workday.
5 Stocks Set to Double
Each was hand-picked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2020. Each comes from a different sector and has unique qualities and catalysts that could fuel exceptional growth.
Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.
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