Thoma Bravo in talks for US$11b buyout of HR tech firm Dayforce
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The news: Dayforce said on Wednesday that it is in advanced talks to be acquired by private equity player Thoma Bravo.
The numbers: Dayforce said that Thoma Bravo would pay USD70 ($108.90) per share, which would amount to a deal value of USD11.18 billion according to Reuters. The offer represents a premium of 32.4% based on the stock’s closing price on 15 August, before the talks were first reported. Bloomberg reports that Dayforce carries around USS$1.2 billion of debt.
Shares in Dayforce rose around 3% in morning US trading.
The context: Dayforce offers software for businesses to manage payrolls, recruiting and employee career development with customers across the healthcare, retail and hospital industries.
Dayforce stock has lost over 9% of its value this year, as it struggles to deal with layoffs at larger companies that slowed its client additions and growth. PE firm Thoma Bravo will likely be betting on the SaaS firm’s potential to integrate AI.
Dayforce said there could be no assurances of whether an agreement for a transaction would be reached.
The sources: Dayforce press release, Bloomberg, Reuters
