Thoma Bravo in advanced talks to acquire HR software provider Dayforce

Private equity heavyweight Thoma Bravo is circling to acquire Dayforce, the Minneapolis-based HR software company, in what could be one of the year’s biggest take-private deals. Bloomberg, citing people familiar with the talks, reported the discussions are advanced and an announcement could come in the next few weeks.

“Thoma Bravo is in talks to acquire human resources management software provider Dayforce Inc., according to people familiar with the matter. The buyout firm is planning to take the Minneapolis-based company private in a deal that could be announced as soon as the coming weeks, the people said, asking not to be identified as the matter is private,” Bloomberg reported.

From Olo to Dayforce: Private Equity Giant Thoma Bravo Isn’t Slowing Its Software Shopping Spree

The news comes just a month after Reuters reported that Thoma Bravo agreed to acquire Olo in a $2 billion all-cash deal, taking the restaurant software firm off the market.

The potential acquisition would value Dayforce at more than $9 billion, topping its current market cap of roughly $8.4 billion. The company carries about $1.2 billion in debt, which would be factored into any deal structure. Some reports suggest the valuation may end up closer to Dayforce’s market cap, but either way, the deal would represent a significant bet on the future of human capital management software.

Dayforce—once known as Ceridian HCM—has been on a growth tear, with revenue up more than 70% since 2021. Its platform, which spans payroll, recruiting, and career management, serves industries from healthcare to retail and financial services. In its most recent quarter, the company beat Wall Street estimates with adjusted earnings of 61 cents per share and $464.7 million in revenue. It’s guiding for Q3 sales between $476 million and $486 million, with full-year 2025 revenue projected just shy of $2 billion.

But Wall Street hasn’t rewarded that growth. The stock has slid nearly 60% from its pandemic-era high and is down 27% year-to-date. News of Thoma Bravo’s interest gave the shares a jolt, spiking as much as 26% in early trading before settling higher on Friday.

Analysts argue the move to go private makes sense. “Logical,” is how Jared Levine at TD Cowen put it, pointing to the gap between Dayforce’s performance and how the market has priced it.

For Thoma Bravo, Dayforce would be the latest in a string of high-profile deals. The firm shelled out $10.6 billion for Boeing’s digital aviation assets this year, spent $2 billion to acquire Olo, and is said to be eyeing Verint Systems. Its track record includes the $8 billion acquisition of Coupa Software in 2022. The strategy is clear: buy undervalued software companies, scale them, and wait for better market conditions.

Dayforce is fighting for share in a crowded field that includes ADP, Paychex, Workday, Paycom, and Paylocity. Its playbook has been to lure customers away from bigger incumbents, and analysts see room for further expansion, particularly among global enterprises. The company’s roots stretch back to 1992; it was taken private in 2007, then re-emerged on public markets in 2018 with a $462 million IPO.

Talks are advanced but not final. The deal could stall, collapse, or draw competing bids. Still, if it goes through, it would mark another step in the wave of private equity-led software consolidations—one that could give Dayforce breathing room to regroup away from Wall Street’s microscope.