Thoma Bravo Eyes Dayforce Acquisition Amidst Software Industry Consolidation

Dayforce is in advanced acquisition talks with Thoma Bravo, offering $70 per share. The proposed $11.18 billion deal signifies another private equity buyout amid market consolidation, with firms like Thoma Bravo investing in recurring revenue software platforms as economic conditions remain uncertain.

Dayforce, a human resources software firm, announced on Wednesday that it is in advanced discussions with Thoma Bravo for a potential acquisition. The deal, at $70 per share, is valued at $11.18 billion. This acquisition highlights private equity's growing interest in software firms amid a volatile economy.

If finalized, the agreement would add to the trend of consolidations within the human capital management market, where major players are rapidly acquiring smaller competitors to enhance their capabilities. This comes as the labor market shows signs of weakening.

Examples of this trend include Paychex acquiring Paycor for $4.1 billion and Automatic Data Processing's purchase of WorkForce Software for $1.2 billion. Despite these shifts, Dayforce shares have fallen over 9% this year, trailing its industry peers.