Workday said on Tuesday that it would buy artificial intelligence firm Sana for $1.1 billion. Sana — which helps companies create their own AI agents to help automate specific tasks — said it will continue to develop such tools for Workday.
Workday’s customers currently rely on its single, cloud-based platform, which offers applications to manage key services such as recruitment, payroll, accounting and auditing. With this acquisition, 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.
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Sana will also continue to develop its core products Sana Learn and Sana Agents. The transaction is expected to close in the fourth quarter of Workday’s fiscal year 2026, ending Jan. 31. Allen & Company is the financial adviser to Workday.
“Sana’s team, AI-native approach, and beautiful design perfectly align with our vision to reimagine the future of work,” said Gerrit Kazmaier, president, product and technology, Workday. “This will make Workday the new front door for work, delivering a proactive, personalized, and intelligent experience that unlocks unmatched AI capabilities for the workplace.” Joel Hellermark, founder and CEO of Sana stated, “Our focus has always been on creating intuitive AI tools that improve how people learn and work. I’m excited to bring these tools to 75 million Workday users and partner with Workday’s iconic team to launch a new era of superintelligence for work.”
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There has been a significant recognition in the HR software, of the need to integrate AI technology into their operations. This acquisition comes one month after Workday’s buyout of Paradox, a company that offers conversational artificial intelligence software for recruiting. This deal allows Workforce to gain access to an AI-powered talent acquisition suite to help customers find, hire and onboard employees more efficiently.
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.
Workday shares recently saw a 9% rise after activist investor Elliott Investment Management announced a $2 billion stake in the company. Workday announced a multi-year plan to enhance its operating model and capital allocation framework on Tuesday, and Elliott said it believes the plan will drive “substantial long-term value creation.”