Stocks Working days 7% closed at $234.88 on Wednesday after activist investor Elliott Investment Management announced its $2 billion stake.
Workday announced a multi-year plan on Tuesday to strengthen its operating model and capital allocation framework, and Elliott said he believes the plan will drive “a considerable long-term value creation.”
“We believe that CEO Carl Eschenbach, CFO Zane Rowe and the entire Workday team have made significant progress in recent years, positioning Workday as a unique software franchise with industry-leading growth potential, best-in-class customer retention and proven management team,” Elliott said in a release Tuesday.
“We are grateful for Elliot’s support,” a Work Day spokesperson told CNBC in a statement. “Workday is a market leader with strong growth potential and we continue to focus on implementing our strategy and providing innovative solutions to help our customers succeed.”
Workday provides software for the financial and human resources sectors.
Last month, Workday said it would acquire Paradox, a company that provides conversational artificial intelligence software for recruitment. Workday did not disclose terms of the transaction.
Shares on business days fell approximately 9% per year. The company’s market capitalization is approximately $63 billion.
Watch: Elliott acquires $4 billion stake in PepsiCo
