Workday to Acquire VNDLY for $510M - Expanding External Workforce Management

Workday to Acquire VNDLY for $510 Million

Workday has announced its intention to acquire VNDLY, a startup located in Mason, Ohio. The acquisition, valued at $510 million, will bolster Workday’s capabilities in managing external workforce personnel.

Expanding Workforce Management Capabilities

Workday currently provides solutions for managing financial and human resource functions. VNDLY’s software specializes in the management of contractors, a service that is becoming increasingly vital given the current challenges in filling permanent positions.

Pete Schlampp, Workday’s chief strategy officer, emphasized the evolving nature of work. He stated that organizations require effective methods for managing contractors, and VNDLY provides precisely that functionality.

Strategic Integration and Customer Benefits

According to Schlampp, integrating VNDLY into the Workday platform will enhance their offerings. This expansion will equip customers with the tools they need to navigate the changing landscape of the modern workforce.

“VNDLY’s innovative and user-friendly approach positions them as a leader in vendor management,” Schlampp noted in an official statement. “Combining our technologies and expertise will enable customers to effectively manage their dynamic workforce and adapt to current work trends.”

Streamlined Workforce Management

The integration will allow customers to manage both internal employees and external contractors from a single interface. This unified approach will eliminate the need for HR personnel to switch between systems based on worker classification.

Furthermore, the combined platform will facilitate comprehensive workforce planning, encompassing all worker types. It will also streamline the management of compliance and risk factors associated with external workers.

Existing Partnership and Deal Timeline

Prior to the acquisition, VNDLY already listed Workday as an integration partner on its website. The transaction is anticipated to be finalized in the first quarter of the coming year, aligning with Workday’s Q4 2022, which concludes on January 31, 2022.

Midwest Startup Success

VNDLY, headquartered in Mason, Ohio, represents another successful exit for a Midwest-based startup. Notable previous exits include Salesforce’s acquisition of ExactTarget (Indianapolis) for $2.5 billion in 2013 and Cisco’s purchase of Duo (Ann Arbor, MI) for $2.35 billion in 2018.

Funding and Company History

Founded in 2017, VNDLY secured approximately $58 million in funding, as reported by Crunchbase. The company’s largest funding round was a $35 million Series B investment in late 2019, led by Insight Partners.

This acquisition underscores the growing importance of comprehensive workforce management solutions in today’s dynamic business environment.