Thoma Bravo's $12.3 Billion Dayforce Buyout Ranks 286th in Liquidity Amid AI-Driven HCM Push

On August 22, 2025, Dayforce (DAY) closed with a 0.29% gain despite a 59.63% drop in trading volume to $0.36 billion, ranking it 286th among stocks by daily liquidity. The share price activity followed the announcement of a landmark $12.3 billion private equity acquisition led by Thoma Bravo, which the company said will accelerate AI integration into its human capital management (HCM) platform.

The transaction, set to close in 2026, includes a $70-per-share cash offer representing a 32% premium over Dayforce’s pre-announcement valuation. CEO David Ossip emphasized the need for capital to advance AI-driven tools in payroll, recruitment, and workforce analytics, positioning the firm to compete with industry giants like Oracle and Workday. The deal also features a $351 million termination fee and regulatory approvals pending, with Dayforce shareholders expected to benefit from the liquidity event.

Analysts highlighted the strategic rationale behind the acquisition, noting Dayforce’s 32% adjusted EBITDA margin and 15-17% annualized recurring revenue growth. While some downgraded their ratings citing competitive pressures in the HCM sector, others praised the 16.3x 2026 EBITDA multiple as in line with industry benchmarks. The company’s 9,600 employees and $1.76 billion in 2024 sales underscore its position as a category leader, though challenges remain in maintaining market share amid macroeconomic headwinds and pricing pressures.

The acquisition strategy aligns with Thoma Bravo’s history of scaling SaaS firms through operational efficiencies and targeted acquisitions. With a 51% gross profit margin and moderate debt levels, Dayforce’s financials remain robust. The Abu Dhabi Investment Authority’s minority stake in the deal further signals confidence in the firm’s long-term potential to redefine HCM through AI innovation.

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