UBS in Talks to Acquire Human Capital Management Firm Dayforce.

UBS is reportedly in talks to acquire Dayforce, a provider of human capital management software. Dayforce offers a platform that includes recruitment, personnel tracking, payroll processing, and employee engagement technology services. The acquisition would expand UBS's offerings in the financial services industry.

Major U.S. equities indexes were little changed Monday morning, ahead of retail sector earnings reports and comments from Federal Reserve Chair Jerome Powell due later in the week. However, notable movements were seen in the shares of Novo Nordisk and Dayforce, as well as other industry-specific stocks.

Novo Nordisk shares climbed following the Food and Drug Administration's approval of Wegovy, the drugmaker's popular weight-loss medicine, to treat a serious liver disease. Meanwhile, Dayforce shares surged after reports indicated that private equity firm Thoma Bravo is in discussions to acquire the human resources software provider.

The acquisition of Dayforce by Thoma Bravo would be a strategic move to expand the private equity firm's portfolio in the human capital management (HCM) space. Dayforce offers a platform that provides recruitment, personnel tracking, payroll processing, and employee engagement services. The company, previously known as Ceridian HCM Holding, has been experiencing a slowdown in its growth rate, with revenue rising 16.3% last year and expected to grow by 10.5% this year [2].

Shares in Dayforce have slipped over 27% year-to-date, giving the company a market value of about $8.4 billion. The company has $1.2 billion in debt, which pegs its enterprise value at more than $9 billion. The deal, if approved, would see Thoma Bravo take Dayforce private [3].

Separately, UBS is reportedly in talks to acquire Dayforce, a provider of human capital management software. The acquisition would expand UBS's offerings in the financial services industry. Dayforce offers AI-driven recruitment, payroll management, and employee career development software, serving clients across various industries such as healthcare, retail, hospitality, and financial services.

The acquisition by UBS would be a significant move for the financial services giant, aiming to diversify and expand its portfolio in the HCM space. UBS, known for its investment banking and asset management services, has been actively seeking opportunities to grow its business through strategic acquisitions.

The potential acquisition of Dayforce by UBS is still in the early stages of discussion. The deal may still face delays or fall through, and there is a possibility that other bidders may emerge. However, the news has sparked interest among investors, with Dayforce's stock surging nearly 22% in pre-market trading [3].

In a market environment where private equity firms face capital allocation challenges, Thoma Bravo has remained active in pursuing acquisitions this year. The firm has been involved in several high-profile acquisitions, including Boeing's flight navigation division and restaurant software provider Olo [2].

The acquisition of Dayforce by either Thoma Bravo or UBS would be a strategic move to expand their respective portfolios in the HCM space. The deal, if approved, could have significant implications for the financial services industry, as it would bring together two major players in the HCM sector.

References:
[1] https://finance.yahoo.com/news/top-stock-movers-now-dayforce-153426893.html
[2] https://www.ainvest.com/news/thoma-bravo-mulls-dayforce-acquisition-hr-software-expansion-2508/
[3] https://news.futunn.com/en/post/60725722/saas-company-dayforce-may-be-heading-towards-privatization-negotiations-for?futusource=news_newspage_recommend