Workday announced on Tuesday that it plans to acquire AI startup Sana for approximately $1.1 billion. The move highlights a growing trend of consolidation in the human resources software industry as companies race to integrate advanced AI capabilities into their platforms to meet evolving customer expectations.
This acquisition follows several major deals in the sector. Last month, private equity firm Thoma Bravo agreed to purchase Dayforce, a competitor to Workday, for $12.3 billion. Earlier this year, Paychex revealed its acquisition of Paycor for $4.1 billion. In 2024, Automatic Data Processing also joined the wave by acquiring WorkForce Software for around $1.2 billion.
Sana, founded in 2016, specializes in building AI agents that help automate specific business tasks. Workday stated that Sana will continue developing these tools as part of its ecosystem.
Workday’s platform is a cloud-based solution that supports essential business functions such as recruitment, payroll, accounting, and auditing. With the addition of Sana’s technology, Workday customers including hiring managers will gain access to features like customized dashboards and automated performance review workflows.
This deal comes shortly after Workday’s announcement of its intent to acquire Paradox, an AI-driven talent acquisition platform designed to streamline hiring and onboarding processes.
The Sana acquisition is expected to close in the fourth quarter of Workday’s fiscal year 2026, which ends on January 31. Allen & Company is serving as Workday’s financial adviser for the transaction.
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