(Bloomberg) — Thoma Bravo is in talks to acquire human resources management software provider Dayforce Inc., according to people familiar with the matter.
The buyout firm is planning to take the Minneapolis-based company private in a deal that could be announced as soon as the coming weeks, the people said, asking not to be identified as the matter is private.
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Shares of Dayforce rose as much as 22% in pre-market New York trading on Monday. The company, whose shares also trade on the Toronto Stock Exchange, had a market value of about $8.4 billion at the close on Friday.
While discussions are advanced, they could still be delayed or falter and it’s possible another bidder may emerge, the people said. Representatives for Thoma Bravo and Dayforce didn’t immediately respond to requests for comment.
Dayforce shares have fallen about 60% from their 2021 peak through Friday. While the company increased revenue more than 70% between 2021 and 2024 and became more profitable, the enterprise software market has had difficulties maintaining momentum after a runup during Covid-19 lockdowns. Companies spent money at the time to upgrade their systems, only to pull back after offices reopened in a shaky economy.
“We would not be surprised if DAY chose to sell given the lack of appreciation for the stock in the public markets,” Jefferies Financial Group Inc. analysts including Samad Samana wrote in a note to clients after the Bloomberg report. “It has been tough sledding for DAY the last few years post-Covid highs, not unlike the rest of the HR/payroll coverage universe. However, it has also underperformed the entire group.”
Thoma Bravo, led by co-founder Orlando Bravo, has remained an active buyer this year in what has remained a challenging environment for private equity firms seeking to deploy capital.
It agreed to purchase Boeing Co.’s flight navigation unit and other digital assets for $10.6 billion in April, and in July it struck a $2 billion deal to buy restaurant software maker Olo Inc. The firm has been in talks about a potential takeover of Verint Systems Inc., Bloomberg News reported last month.
Dayforce, which rebranded from Ceridian HCM Holding Inc. last year, provides AI-powered software for managing recruitment, payrolls and employee career development. Its customers include companies in the health-care, retail and hospitality and financial services sectors.
