It's a 'highly strategic move', says global industry analyst Josh Bersin - the acquisition of conversational AI recruitment pioneer Paradox by workforce management giant Workday.

Workday just announced the conclusion of a definitive agreement for the acquisition, which is expected to close by 31 October this year - the end of Workday's third fiscal quarter - if everything goes smoothly.

This acquisition is significant because it doesn't just represent an expansion of Workday’s product offerings. Paradox's central capability is the automation of high-volume hiring for industries that need large numbers of people very quickly, such as retail, healthcare, hospitality, or travel/transport. Such industries employ 3 billion workers and make up 70% of all hiring globally.

By acquiring Paradox, Workday can immediately expand into these sectors. This could change Workday's entire trajectory as a business, said Bersin in a separate commentary on the deal.

"Workday's acquisition of Paradox is a highly strategic move," said Bersin. "This establishes Workday as a leader in high-volume, front-line hiring, which covers 70% of the jobs in the world, and also brings a pioneering AI product team into the company. Workday customers should be excited about the potential."

Paradox was last valued at over $1.5 billion in 2021.

Morgan Stanley & Co. LLC is serving as financial advisor to Workday and Orrick is serving as its legal advisor. Qatalyst Partners is serving as financial advisor to Paradox and DLA Piper is serving as its legal advisor.