Workday announced Monday that it plans to acquire Scout RFP, makers of cloud-based e-sourcing and procurement software, for $540 million. Based in San Francisco, Scout RFP's platform is designed to help businesses manage the entire procurement process, from project intake through sourcing pipeline, to contract and supplier management.
Workday was a strategic investor in Scout RFP, which had raised over $60 million as of its Series C round.
The acquisition is meant to help Workday expand its portfolio of procure-to-pay services and accelerate its ability to deliver a comprehensive source-to-pay solution, the company said.
"Scout RFP is an industry leader that is loved by procurement teams who are undergoing a significant shift to better optimize spend," said Workday CEO and co-founder Aneel Bhusri. "Together, we will deliver a modern source-to-pay solution that accelerates our momentum in the spend management market and expands how customers can plan, execute, analyze, and extend in one system."
Going forward, Scout RFP will continue to build its core sourcing technology and support customers. The company's more than 160 employees across North America and Europe will also join Workday.