Workday to Acquire AI Firm Sana for $1.1 Billion

San Francisco, CA – On September 16, Workday announced it will acquire artificial intelligence company Sana for about $1.1 billion. This move reflects a growing trend of consolidation in the HR software sector as companies strive to enhance their offerings with advanced technology.

Sana, founded in 2016, specializes in creating AI agents that automate specific workplace tasks. Under the agreement, Sana will continue to develop these tools while benefiting from Workday’s single, cloud-based platform. Current Workday customers, including hiring managers, will gain access to custom dashboards and automated performance review processes thanks to Sana’s technology.

This acquisition follows Workday’s recent announcement to purchase Paradox, aimed at enhancing its talent acquisition capabilities with AI technology. Both transactions highlight the increasing integration of AI into HR solutions to meet evolving customer demands.

The deal is expected to finalize in the fourth quarter of Workday’s fiscal year 2026, which ends January 31, 2026. Allen & Company is serving as the financial adviser for Workday, while Orrick is acting as legal counsel.

Gerrit Kazmaier, president of product and technology at Workday, expressed optimism about the acquisition, stating, “Sana’s team, AI-native approach, and beautiful design perfectly align with our vision to reimagine the future of work.” Joel Hellermark, founder and CEO of Sana, also welcomed the partnership, saying he is excited to deliver their intuitive AI tools to over 75 million Workday users.

As Sana joins Workday, the company plans to combine its AI capabilities with Workday’s extensive data to create a unique work experience. With innovative tools like Sana Learn, which enhances learning experiences, Workday aims to empower employees by leveraging AI to improve productivity and efficiency.

The proposed acquisition represents a significant step for Workday as it works to position itself as a leader in the evolving landscape of HR technology.