(Adds details on the deal)
June 11 (Reuters) - Workday Inc said on Monday it would buy Adaptive Insights Inc in a deal valued at $1.55 billion, paying a hefty premium for the cloud-based company that was expected to go public this week.
Adaptive Insights, a provider of cloud platform for business planning, was expected to raise up to $123 million in its initial public offering, valuing the company at more than $600 million.
Workday expects to fund the deal with cash from its balance sheet and assume about $150 million in unvested equity issued to Adaptive Insights employees. The deal is expected to close in Workday's third quarter, ending Oct. 31.
Allen & Company LLC is serving as financial adviser to Workday, and Fenwick & West LLP is its legal adviser.
Morgan Stanley & Co. LLC is acting as financial adviser to Adaptive Insights, and Cooley LLP is its legal adviser. (Reporting by Sonam Rai in Bengaluru; Editing by Anil D'Silva)