US private equity firm Thoma Bravo has agreed to acquire Dayforce, a Minneapolis-based HR software provider, for US$12.3 billion.

The private equity firm will pay US$70 per share, a 32% premium to Dayforce’s share price before reports of the deal surfaced.

Abu Dhabi Investment Authority will take a significant minority stake in the transaction.

Dayforce, previously known as Ceridian HCM, was acquired by THL Partners and Fidelity National for US$5.3 billion more than a decade ago, and was later taken public in 2018.

Thoma Bravo said this is its largest take-private deal to date.

🔗 Source: Axios

🧠 Food for thought

1️⃣ Private equity bets big on HR tech amid deteriorating labor conditions

Thoma Bravo’s $12.3 billion Dayforce acquisition comes at a time when the U.S. labor market is showing significant weakness, creating an apparent contradiction in investment timing.

The July 2025 jobs report revealed only 73,000 new positions added with unemployment rising to 4.2%, while previous months saw combined downward revisions of 258,000 jobs2.

This represents the weakest job creation pace in decades outside of recessions, with job losses particularly concentrated in goods-producing sectors like manufacturing2.

The timing suggests private equity firms may be positioning for a labor market recovery or betting that economic uncertainty will drive companies to invest more heavily in HR technology to optimize their existing workforce.

Companies facing hiring freezes and workforce optimization pressures often turn to software solutions to maximize productivity from current employees, potentially making HR platforms more valuable during downturns.

2️⃣ HR software valuations reflect massive sector transformation over past decade

The Dayforce deal illustrates the dramatic value appreciation in HR technology, with the company’s valuation more than doubling since its previous private equity ownership.

Thoma Bravo paid $12.3 billion for Dayforce, compared to the $5.3 billion that THL Partners and Fidelity National invested more than a decade earlier1.