Scout RFP, a company launched in 2014 by Case Western Reserve University graduates Stan Garber and Alex Yakubovich, has been acquired by Workday Inc. in an all-cash transaction valued at $540 million, subject to adjustments.

Scout RFP is an industry leader that is loved by procurement teams who are undergoing a significant shift to better optimize spend,” said Workday Co-Founder and CEO Aneel Bhusri said in a statement. “Together, we will deliver a modern source-to-pay solution that accelerates our momentum in the spend management market and expands how customers can plan, execute, analyze, and extend in one system.”

Yakubovich added: “As a Workday Ventures portfolio company and Workday Software Partner, we’ve been incredibly impressed with Workday's team, culture, customer focus, and products. In addition to our common passion for innovative technologies, our two companies also share a commitment to employee and customer satisfaction, which will enable us to advance our vision to transform strategic sourcing.”

The transaction is expected to close in the fourth quarter of Pleasanton, California-based Workday's fiscal year 2020, ending Jan. 31, 2020, subject to the satisfaction of customary closing conditions, including required regulatory approval.

With more than 160 employees in North America and Europe, Scout’s offerings have been used by nearly 300,000 people in more than 150 countries, according to a CWRU news release. Customers include Smucker’s, Levi’s, Zappos, Best Buy, Dish Network, Adobe and many others.

“This is a huge success for our alums at Scout and their entire team,” said Todd Schwarzinger, interim executive director of the university’s Veale Institute for Entrepreneurship. “It’s inspiring for our students to see young entrepreneurs from Case Western Reserve leverage their skills and connections toward such an outcome.”

Cooley LLP is serving as legal adviser to Workday, and Fenwick & West is serving as Scout RFP’s legal adviser.

Scout RFP is headquartered in San Francisco and funded by Scale Ventures, Menlo Ventures, New View Capital, Salesforce Ventures, Workday Ventures, and Google Ventures.