Deutsche Bank Believes Thoma Bravo in Talks to Acquire Dayforce

Thoma Bravo is reportedly in talks to acquire Dayforce, according to Deutsche Bank. Bloomberg has confirmed the news, citing sources familiar with the matter. The deal is expected to be a significant one, with the acquisition price likely to be high. The acquisition would be a strategic move for both companies, with Deutsche Bank looking to expand its presence in the financial services sector and Thoma Bravo seeking to bolster its portfolio of software companies.

Private equity giant Thoma Bravo is reportedly in discussions to acquire Dayforce, a leading provider of AI-powered human capital management (HCM) solutions. According to Deutsche Bank, the acquisition price is expected to be substantial, potentially positioning this deal as one of the largest in the HR tech sector.

The acquisition would be a strategic move for both parties. Deutsche Bank, which is rumored to be involved in the talks, would look to expand its presence in the financial services sector, while Thoma Bravo aims to bolster its portfolio of software companies. The deal, if finalized, would likely be a significant milestone for the HR tech industry, reflecting the growing interest in AI-driven SaaS platforms.

Dayforce's stock has experienced a 27% decline year-to-date as of August 2025, despite reporting $1.85 billion in annual revenue and a 31.7% adjusted EBITDA margin. This discrepancy between fundamentals and market valuation highlights the undervaluation of public HR tech stocks, creating an opportunity for private equity firms to step in and unlock value.

Thoma Bravo's acquisition strategy is centered on platforms with AI readiness and recurring revenue models. By leveraging its $166 billion in assets under management, the firm aims to accelerate Dayforce's AI integration, potentially expanding its predictive analytics and automation capabilities. This aligns with broader industry trends: Gartner predicts that by 2026, 40% of HR decisions will be augmented by AI, up from just 15% in 2023.

The acquisition would allow Thoma Bravo to pursue a "buy-and-build" strategy, streamlining operations and pursuing strategic bolt-ons in workforce analytics or compliance tools. This approach has been successful in past Thoma Bravo deals, such as the spin-off of Dynatrace and the $11 billion sale of Adenza. Moreover, private ownership allows Dayforce to reinvest in AI infrastructure without the pressure of quarterly earnings reports.

For investors, the Dayforce deal highlights the importance of focusing on SaaS companies with durable margins, niche expertise, and AI scalability. While public market valuations remain cautious, private equity's appetite for undervalued platforms suggests a potential re-rating for companies with strong fundamentals.

The broader SaaS buyout trend, as evidenced by Thoma Bravo's recent transactions, reflects a shift toward vertical-specific solutions in high-growth sectors. As the HR tech market matures, the ability to execute on AI-driven strategies and scale efficiently will be critical to long-term success.

References:
[1] https://www.ainvest.com/news/private-equity-saas-surge-thoma-bravo-dayforce-buyout-future-hr-tech-2508/
[2] https://www.ainvest.com/news/dayforce-acquisition-thoma-bravo-implications-hr-tech-sector-2508/