VC-Backed Workday Taps Goldman and Morgan for One of Year’s Biggest Tech IPOs

(Reuters) – Workday Inc., a VC-backed business management software company, has hired Goldman Sachs and Morgan Stanley to lead its initial public offering later this year, according to several sources familiar with the situation.

The offering, expected to be one of this year’s largest tech IPOs, follows the successful listings of other enterprise software companies including Guidewire, Jive Software and Demandware.

Enterprise software companies are benefiting from increased interest by businesses for services like cloud computing, which allows users to access information through the Web rather than through on-site servers.

Workday, based in Pleasanton, California, was co-founded by David Duffield and Aneel Bhusri, former PeopleSoft executives who left that company after its acquisition by Oracle Corp. in 2004. The company sells human resources and financial management software to businesses.

Workday’s revenue topped $300 million in 2011, according to AllThingsD, and the company is estimated to be worth around $2 billion.

Workday has raised $250 million from venture capital firms and other investors, including Greylock Partners, New Enterprise Associates, T Rowe Price, Morgan Stanley Investment Management, Janus Capital Group Inc. and Bezos Expeditions, the personal investment entity of Amazon.com Inc. CEO Jeff Bezos.

Representatives for Workday, Goldman Sachs Group and Morgan Stanley all declined comment.

By Olivia Oran, Reuters

(Reporting By Olivia Oran; Editing by Peter Lauria, Dave Zimmerman, Reuters)

Image credit: A Goldman Sachs sign is seen on the floor of the New York Stock Exchange, April 16, 2012. Brendan McDermid, Reuters

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