Workday Acquires AI Firm Sana for $1.1 Billion
Lead Workday (WDAY) announced on September 16, 2025, that it will acquire AI company Sana for approximately $1.1 billion to embed generative AI into its human resources software suite.
Nut Graf The deal underscores the accelerating consolidation in the HR technology sector as enterprise software vendors race to integrate advanced AI capabilities and deliver more personalized employee experiences.
Acquisition Highlights
- Definitive agreement signed on September 16, 2025
- Purchase price: $1.1 billion in cash
- Expected close: fourth quarter of Workday’s fiscal 2026 (ending January 31, 2026)
Strategic Rationale Workday plans to merge Sana’s AI-powered search, learning, and agent tools with its existing platform to create a “new front door for work,” enhancing proactive, personalized guidance and automating routine tasks for HR and finance teams.
Main Details Founded in 2016, Sana has built two flagship products-Sana Learn, an AI tutor for employee skill development, and Sana Agents, proactive virtual assistants that generate insights from enterprise data. Under Workday, these tools will bolster the company’s learning suite and low-code agent builder to streamline workflows from onboarding to performance reviews.
Market Context This acquisition follows Workday’s August deal to buy Paradox and comes amid other major transactions, including Thoma Bravo’s $12.3 billion purchase of Dayforce and ADP’s prior acquisition of WorkForce Software. The move reflects growing customer demand for AI-driven automation in recruitment, payroll, and talent management.
Leadership Comments “Sana’s AI-native approach and beautiful design perfectly align with our vision to reimagine the future of work,” said Gerrit Kazmaier, president of product and technology at Workday. Joel Hellermark, founder and CEO of Sana, added, “I’m thrilled to bring our AI tools to Workday’s 75 million users and accelerate innovation at scale.”
Financial Advisory Allen & Company served as financial advisor to Workday on the transaction.
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