Thoma Bravo in Advanced Talks to Acquire Dayforce in $11B Take-Private Deal
Thoma Bravo is in advanced talks to acquire Dayforce Inc. in a deal valued at more than $11 billion, potentially taking the HR software provider private. Despite strong revenue growth and improving profitability, Dayforce has struggled in public markets, losing 60% of its value since 2021. The acquisition would highlight growing consolidation in the HR and payroll software sector, following moves by Paychex and ADP, and reinforce Thoma Bravo’s position as one of the most active private equity buyers in the technology space.
Private equity giant Thoma Bravo is in advanced discussions to acquire Dayforce Inc., the Minneapolis-based human capital management software provider, in a deal valued at more than $11 billion, according to people familiar with the matter.
If finalized, the transaction would take Dayforce private and mark one of the largest buyouts in the HR technology sector to date. An announcement could come within weeks, though the talks remain fluid and could still be delayed or collapse. Rival bidders may also emerge.
News of the potential acquisition sparked a surge in Dayforce shares, which jumped as much as 28% on Monday — their sharpest intraday rally in more than seven years — before settling up 25% at mid-morning trading in New York. The stock performance lifted the company’s market capitalization to about $10.6 billion.
Dayforce, formerly known as Ceridian HCM Holding Inc., rebranded last year and has expanded its AI-driven solutions across payroll, recruitment, and career development. Its customer base spans healthcare, retail, hospitality, and financial services. Despite revenue growth exceeding 70% between 2021 and 2024, and improved profitability, Dayforce shares had lost about 60% of their value since peaking in 2021. Analysts have pointed to a lack of investor recognition in public markets, with Dayforce lagging behind peers in the HR and payroll software space.
Led by co-founder Orlando Bravo, Thoma Bravo has remained highly active in technology buyouts despite a challenging market for private equity deals. In April, the firm agreed to purchase Boeing’s flight navigation unit and other digital assets for $10.6 billion, followed by the $2 billion acquisition of restaurant software maker Olo Inc. in July. Reports also indicate that Thoma Bravo has been in talks regarding a possible takeover of Verint Systems Inc.
The interest in Dayforce reflects a broader wave of consolidation in human capital management software. Recent deals include Paychex’s acquisition of Paycor HCM and ADP’s purchase of WorkForce Software. Analysts say a Thoma Bravo takeover would underscore how private equity is reshaping the competitive landscape in HR technology.
Source: Bloomberg, GlobeNewswire, company filings, and market data.
