Workday Inc (NASDAQ:WDAY) announced that the company would be buying Adaptive Insights for $1.55 billion.

The California-based on‑demand financial management and human capital management software vendor said that it is making the acquisition to expand its portfolio of services. Adaptive Insights is a provider of cloud-based business planning and financial modeling tools.

The move comes as a bit of a surprise considering that the latter had filed for an IPO as recently as May 17. Workday said that it will be paying $1.55 billion, including “the assumption of approximately $150 million in unvested equity issued to Adaptive Insights employees” related to that IPO. This deal is slated to close during the third quarter of this year.

“Adaptive Insights is an industry leader with its Business Planning Cloud platform, and together with Workday, we will help customers accelerate their finance transformation in the cloud,” said Aneel Bhusri, Co-Founder and CEO, Workday, in a statement. “I am excited to welcome the Adaptive Insights team to Workday and look forward to coming together to continue delivering industry-leading products that equip finance organizations to make even faster, better business decisions to adapt to change and to drive growth.”

Workday first went public in 2012 and currently has a market cap of nearly $27 billion.

WDAY stock was down about 0.5% on Monday.