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.

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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...

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