Thoma Bravo Eyes $11B Acquisition of Dayforce Amid Software Market Shakeup
Dayforce, an HR software firm, is negotiating its acquisition by Thoma Bravo at $70 per share, amounting to a deal valued at $11.18 billion. This acquisition reflects the growing trend of private equity investments in software firms as they harness AI potential to drive growth and adapt to economic uncertainties.
HR software company Dayforce announced on Wednesday that it is in advanced talks to be acquired by Thoma Bravo for $70 per share. This potential deal, valued at $11.18 billion, emphasizes a trend of private equity investing in software as a growth driver amid economic instability.
The offer reflects a 32.4% premium over Dayforce's stock closing price on August 15, before news of the discussions surfaced. If finalized, this deal would mark yet another buyout in the software sector by private equity firm Thoma Bravo, betting on the expansion of AI software and steady recurring revenue in a challenging economic climate.
Moreover, eMarketer analyst Jeremy Goldman noted that Dayforce will benefit from financial and operational flexibility away from Wall Street's demand for quarterly results, allowing it to invest and grow. This comes as the human capital management sector faces consolidation, with major players acquiring smaller firms amid a volatile labor market.
(With inputs from agencies.)
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