Thoma Bravo is in talks to acquire AI-driven HR software provider Dayforce in a deal that could value the business at more than $9bn, according to Bloomberg sources.

The US private equity firm is reportedly aiming to take the Nasdaq- and Toronto-listed company private, with a formal announcement expected within weeks. Dayforce shares surged 22% in pre-market trading following news of the discussions, reaching a market capitalisation of $8.4bn as of Friday’s close.

Dayforce, formerly known as Ceridian HCM, has seen revenue grow by more than 70% between 2021 and 2024. However, its shares are still down 60% from their pandemic-era peak, as the broader enterprise software market contends with weaker post-Covid demand and tighter capital expenditure.

With $1.2bn in debt on its books, Dayforce’s total enterprise value exceeds $9bn. The company provides AI-powered tools for payroll, recruitment, and career management to clients across healthcare, retail, financial services, and hospitality.

The potential deal adds to Thoma Bravo’s active deal streak in 2024. Earlier this year, the firm agreed to buy Boeing’s digital aviation assets for $10.6bn and snapped up Olo, a restaurant software company, for $2bn. It is also reportedly exploring a bid for Verint Systems.

Thoma Bravo’s continued interest in large-scale tech buyouts underlines its strategy of acquiring undervalued software leaders with strong fundamentals and scaling potential.

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