Workday Inc., a provider of enterprise cloud applications for finance and human resources, has announced that it is all set to acquire employee feedback technology company Peakon ApS in cash. “By joining forces with Workday, we’re able to accelerate our mission to help every employee drive the change they want to see,” says Phil Chambers, co-founder and CEO of Peakon.
Workday will acquire Peakon for $ 700M (approx €577.4M) in cash. The transaction is expected to close in the first quarter of Workday’s fiscal year 2022, ending April 30, 2021.
Orrick and Bech-Bruun are serving as legal advisors to Workday, and Wilson Sonsini Goodrich & Rosati, Osborne Clarke, and Highbridge are serving as legal advisors to Peakon and its shareholders.
About Workday and Peakon
Workday, founded by David Duffield, is an American on‑demand financial management and human capital management software vendor. The company’s applications for financial management, HR, planning, spend management, and analytics have been adopted by organisations around the world and across industries – from medium-sized businesses to more than 45 per cent of the Fortune 500 companies.
As for Denmark-based Peakon, it is an employee success platform that converts feedback into insights. With the largest standardised data set of employee feedback in the world, Peakon claims to provide customised benchmarks and personalised insights to support its mission of helping every employee drive the change they want to see. To date, Peakon has helped organisations like Capgemini, The Adecco Group, Delivery Hero, Staples and easyJet.
Aim of this acquisition
With this development, Workday will provide organisations with a continuous listening platform, including real-time visibility into employee experience, sentiment, and productivity, to help drive employee engagement and improve organisational performance.
“Bringing Peakon into the Workday family will be very compelling to our customers – especially following an extraordinary past year that has magnified the importance of having a constant pulse on employee sentiment in order to keep people engaged and productive,” says Aneel Bhusri, co-founder and co-CEO, Workday.
The combination will merge intelligent technology from Peakon that determines and distributes surveys and information to the right person at the right time, with the comprehensive employee insight in Workday, to help leaders discover and respond to evolving employee feelings, needs, and behaviours.
For example, customers will be able to gain better insights and understanding on employee belonging, which will help them adjust plans to encourage an inclusive workplace culture.
Josh Bersin, global industry analyst, says, “Listening to employees has become one of the most urgent strategies to build agility, responsiveness, and growth. Workday’s acquisition of Peakon will enable Workday customers to deploy a highly targeted and integrated employee listening strategy, addressing a top priority in employee experience today.”
Data with regards to employee sentiment of 2020
Peakon’s Heartbeat website that shows macro-trends has accumulated 153 million survey responses and found out that in 2020, the focus was on how companies and employees were responding to the COVID-19 pandemic.
A surprise finding: “We saw that from the start of 2020 through July, employee engagement actually increased 2 per cent globally for Peakon customers. In addition to this, we also observed a 5% increase in employees feeling their mental well-being was a priority for their employers,” mentions Phil Chambers, Peakon’s co-founder and CEO, in a blog post.
According to the website, in 2020, employees missed out on career growth. The data shows that the formal recognition of that learning through growth and career progression has slowed slightly.
Uber Now Sells Air Taxi Business Elevate To Start-Up Joby Aviation Market.us Media – United States Market News
“startups when:1d” – Google News
Uber has offloaded its air taxi enterprise Elevate to Joby Aviation, the last of several moonshots to be sold by the ride-hailing company in a pursuit to stick to its core business and reach profitability.
The transaction announced Tuesday is part of a complex deal that includes Uber investing $ 75 million into Joby and an expanded partnership between the two companies. Last year, Uber and Joby, which is developing an all-electric, vertical take-off and landing passenger aircraft, signed on as a vehicle partner for Uber’s Elevate initiative. Joby was the first partner to commit to deploying air taxi services by 2023.
The $ 75 million investment comes in addition to a previously undisclosed $ 50 million investment made as part of Joby’s Series C financing round in January 2020, Uber said. To date, Joby Aviation has raised $ 820 million. Uber has invested a total of $ 125 million into the startup.
Under the deal, which is expected to close in early 2021, the two parent companies have agreed to integrate their respective services into each other’s apps.
“Advanced air mobility has the potential to be exponentially positive for the environment and future generations,” Uber CEO said Dara Khosrowshahi said in a statement. “This deal allows us to deepen our partnership with Joby, the clear leader in this field, to accelerate the path to market for these technologies.”
While Joby is considered one of the leaders, Elevate did play a role in shaping the nascent industry, including establishing some of the benchmarks used by competitors.
“The team at Uber Elevate has not only played an important role in our industry, they have also developed a remarkable set of software tools that build on more than a decade of experience enabling on-demand mobility,” Joby Aviation CEO JoeBen Bevirt said in a statement.”These tools and new team members will be invaluable to us as we accelerate our plans for commercial launch.”
One year ago, Uber’s business model could be categorized as an “all of the above approach,” a strategy to generate revenue from all forms of transportation, including ride-hailing, micromobility, logistics and package and food delivery. The COVID-19 pandemic and Khosrowshahi’s focus on profitability prompted the company to dump its moonshots and double down on delivery with its acquisition of Postmates.
Today, Uber is a company focused on ride-hailing and delivery while keeping its hand in micromobility, logistics and autonomous vehicles through a series of deals struck in 2020.
The Joby-Elevate terms are similar to two other Uber deals this year. In spring, Uber led a $ 170 million funding round in micromobility startup Lime. As part of the deal, Lime acquired Uber’s micromobility subsidiary Jump. The majority of Jump’s 400 employees were laid off. Earlier this week, autonomous vehicle startup Aurora Innovation reached an agreement with Uber to buy the ride-hailing firm’s self-driving unit in a complex deal that will value the combined company at $ 10 billion.
Just like the Uber’s deals with Lime and now Joby, Aurora isn’t paying cash for Uber ATG, a company that was last valued at $ 7.25 billion. Instead, Uber is handing over its equity in ATG and investing $ 400 million into Aurora, which will give it a 26% stake in the combined company, according to a filing with the U.S. Securities and Exchange Commission.
Uber said October that it sold off a $ 500 million stake in its Uber Freight business to an investor group led by New York-based investment firm Greenbriar Equity Group. The deal valued the unit at $ 3.3 billion on a post-money basis. Uber has maintained its majority stake in Uber Freight unlike the Jump, Elevate and ATG deals.
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