Workday on the Rise – OneSource Virtual Raises $15 Million

OneSource Virtual announced this week that it has raised $15 million from Halyard Capital to fund its rampant growth. OneSource Virtual is a leading Workday partner that has moved beyond just implementing the Workday solution to providing a full outsourced service in the Workday ecosystem including payroll, benefits, taxes and garnishments.

Workday continues to be the dominant cloud solution in the HR space and OneSource as well as a small group of other Workday service providers have ridden the Workday wave to incredible growth. OneSource Virtual as well as other Workday partners are growing at, or in some cases in excess of 100% per annum. This growth continues to attract strategic and private equity interest. Deals in the Workday ecosystem started last year with Deloitte’s acquisition of Aggressor, Aon’s acquisition of Omnipoint and Appirio’s acquisition of Knowledge Infusion. OneSource Virtual is the first pure play Workday services firm to bring in a Growth Equity financial partner but we expect others to follow suit in 2013. At the same time we expect M&A activity in the Workday ecosystem to continue as the large Consulting and HR Outsourcing firms are willing to pay premium values for access to the this market and the growth associated with the Workday partners.

The partnership between Halyard and OneSource Virtual is a great fit. Halyard has a strong track record of helping its portfolio companies scale and with fresh capital OneSource Virtual is well positioned to strengthen its dominant position in the Workday ecosystem and continue to expand its outsourced offering in the space.