Workday to buy Adaptive Insights for $1.55 billion

(Reuters) - Workday Inc WDAY.O said on Monday it would buy Adaptive Insights Inc in a deal valued at $1.55 billion, paying a hefty premium for the cloud-based company that was expected to go public this week.

Adaptive Insights, a provider of cloud platform for business planning, was expected to raise up to $123 million in its initial public offering, valuing the company at more than $600 million.

Workday expects to fund the deal with cash from its balance sheet and assume about $150 million in unvested equity issued to Adaptive Insights employees. The deal is expected to close in Workday’s third quarter, ending Oct. 31.

Allen & Company LLC is serving as financial adviser to Workday, and Fenwick & West LLP is its legal adviser.

Morgan Stanley & Co. LLC is acting as financial adviser to Adaptive Insights, and Cooley LLP is its legal adviser.

Reporting by Sonam Rai in Bengaluru; Editing by Anil D’Silva