Thoma Bravo Eyes $84B Dayforce Acquisition, Delisting Imminent

Private equity firm Thoma Bravo is in advanced discussions to acquire Dayforce, a prominent provider of human resource management software. The potential acquisition aims to delist Dayforce from public markets and take it private. The deal is anticipated to be announced within the next few weeks, although there remains a possibility of delays or the negotiations falling apart. Additionally, the emergence of other bidders cannot be ruled out.

Dayforce, formerly known as Ceridian HCM Holding Inc., offers AI-driven recruitment, compensation management, and employee career development software. The company serves a wide array of industries, including healthcare, retail, hospitality, and financial services. Over the past 12 months, Dayforce's stock has experienced a decline of approximately 5%, with the company's market capitalization currently around $84 billion. Dayforce is listed on both the New York Stock Exchange and the Toronto Stock Exchange.

Thoma Bravo, under the leadership of co-founder Orlando Bravo, has maintained an active presence in the market despite the challenges faced by private equity firms in capital allocation. This year, the firm has agreed to acquire Boeing's flight navigation division and other digital assets for $10.6 billion in cash, and Olo Inc., a restaurant software manufacturer, for $2 billion. Thoma Bravo has also been in discussions regarding a potential acquisition of Verint Systems Inc.

The potential acquisition of Dayforce by Thoma Bravo comes at a time when private equity firms are grappling with significant challenges in deploying capital. However, Thoma Bravo's aggressive acquisition strategy indicates the firm's confidence in generating returns for its investors. The acquisition of Dayforce would expand Thoma Bravo's portfolio of technology and software companies, which already includes several high-profile names in the industry.