Thoma Bravo to buy Dayforce in $12.3 billion deal
(Reuters) -HR software provider Dayforce said on Thursday buyout firm Thoma Bravo will take it private in a $12.3 billion deal, including debt.
The offer represents a premium of 32.4% based on the stock’s closing price on August 15, when news of the deal talks was first reported.
Under the terms of the deal, Dayforce shareholders will receive $70 per share in cash, representing an equity value of $11.18 billion, according to Reuters calculations.
The software sector has emerged as an investment target due to resilient subscription services and recurring revenue in an economy weighed down by a deteriorating labor market, trade tariffs and erratic spending.
Dayforce, which rebranded from Ceridian HCM Holding (NYSE:DAY) last year, faces strong competition in the industry, with enterprises preferring more established companies with larger operations.
A wave of deals in the human capital management industry in recent years signals a shift toward AI-driven, single-platform solutions, with acquisitions aimed at consolidating and enhancing the tools offered to clients.
Paychex (NASDAQ:PAYX) announced its acquisition of rival Paycor (NASDAQ:PYCR) for $4.1 billion at the start of the year, while Automatic Data Processing (NASDAQ:ADP) acquired WorkForce Software last year for about $1.2 billion.
The transaction, which includes a minority investment from a subsidiary of the Abu Dhabi Investment Authority, is expected to close early next year, Dayforce said.
Thoma Bravo, which had about $184 billion in assets under management as of March 31, is among the largest software-focused investors globally. The private equity firm has acquired or invested in more than 530 software and technology companies.
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