Workday will acquire AI firm Sana for $1.1 billion
Workday announced on Tuesday that it will acquire AI company Sana for approximately $1.1 billion, marking another major move in the fast-consolidating HR software sector. The acquisition underscores how enterprise software providers are racing to integrate artificial intelligence into their platforms to meet growing customer demand.
Founded in 2016, Sana specializes in creating AI agents that help businesses automate specific tasks. Workday said Sana will continue developing these tools under its umbrella, with a focus on enhancing automation and personalized insights for HR professionals.
With this deal, Workday customers—including recruiters, hiring managers, and HR leaders—will gain access to advanced AI-driven features. These include generating customized dashboards, automating performance reviews, and streamlining other workforce management processes.
The acquisition follows Workday’s purchase of Paradox last month, which brought AI-powered talent acquisition capabilities into its suite, helping organizations better source, hire, and onboard employees.
The HR technology sector has seen a flurry of consolidation this year. In August, private equity giant Thoma Bravo agreed to acquire Workday rival Dayforce for $12.3 billion. Earlier in 2025, Paychex announced a $4.1 billion deal for Paycor, while ADP acquired WorkForce Software for about $1.2 billion in 2024.
Workday, whose single cloud-based platform manages recruitment, payroll, accounting, and auditing, is positioning itself to stay ahead in the AI-driven HR solutions market.
The transaction is expected to close in the fourth quarter of Workday’s fiscal 2026, which ends January 31. Allen & Company is serving as financial adviser to Workday.
