Thoma Bravo is in advanced negotiations to acquire HR software firm Dayforce in a deal valuing the company at $11.18bn, according to Reuters. 

The private equity firm is offering $70 per share, representing a 32.4% premium to Dayforce’s stock price before the discussions were reported.

Dayforce shares climbed around 3% in early trading following the announcement. If completed, the buyout would provide Thoma Bravo with a major SaaS platform underpinned by recurring revenues and artificial intelligence growth opportunities.

“Dayforce gets relief from being an undervalued public company and gains the flexibility to invest and grow outside of Wall Street’s quarterly pressure. Thoma Bravo secures a strong SaaS asset with steady cash flow, AI potential and room for operational improvements,” said eMarketer analyst Jeremy Goldman.

The human capital management sector has seen a wave of consolidation. Paychex bought rival Paycor for $4.1bn earlier this year, while Automatic Data Processing acquired WorkForce Software for about $1.2bn in 2024.

Despite signs of market weakness, with tariffs introduced by President Trump slowing deal activity, Thoma Bravo’s interest underscores the continued appetite for technology-driven assets.

Dayforce, which provides payroll and workforce management software, has underperformed peers this year with its shares losing more than 9% of their value. The company cautioned that there is no certainty a final agreement will be reached.

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