Thoma Bravo eyes $11.2b acquisition of HR software firm Dayforce

HR software firm Dayforce said it is in advanced talks to be acquired by Thoma Bravo for $70 per share.

The offer represents a 32.4% premium over Dayforce’s stock price on August 15, before reports of the negotiations.

Dayforce, which provides human capital management and payroll software, said there is no guarantee the deal will go through.

Shares of Dayforce rose over 3% in pre-market trading after the announcement.

The company’s stock is down more than 9% in 2025, trailing its industry peers.

The human capital management sector has seen increased consolidation, with Paychex acquiring Paycor earlier this year and Automatic Data Processing buying WorkForce Software in 2024.

Thoma Bravo has made several investments in software firms, focusing on recurring revenue and AI-related products.

🔗 Source: Reuters

🧠 Food for thought

1️⃣ Private equity leverages market downturns to acquire fundamentally strong software companies at discounts

Dayforce’s acquisition demonstrates how private equity firms capitalize on temporary market pessimism around software stocks to secure valuable assets below their intrinsic value.

Despite Dayforce growing revenue by over 70% from 2021 to 2024, its shares declined 60% from pandemic peaks, creating an opportunity for Thoma Bravo to acquire the company with a 32.4% premium that still represents significant value1 2.

This pattern reflects broader market dynamics where software companies with strong recurring revenue models trade at depressed valuations due to concerns about economic uncertainty and higher interest rates.

Thoma Bravo’s $184 billion in assets under management and track record of 535 transactions positions the firm to move quickly on such opportunities when public markets misprice software assets3.

The firm’s strategy of acquiring undervalued software leaders with strong fundamentals has proven successful across its 75-company portfolio, particularly during periods of market volatility3 2.