Private equity firm Thoma Bravo is reportedly in talks to acquire Dayforce Inc. (NASDAQ:DAY). Dayforce, formerly Ceridian, which offers human resources software and services.
The company has a market value of approximately $8.4 billion, according to data from Benzinga Pro.
Sources said that the buyout firm is preparing to take the Minneapolis-based company private, with a deal possibly announced in the coming weeks. They added that talks are advanced but could still face delays, collapse, or attract another bidder.
Bloomberg noted that Dayforce shares are down roughly 60% from their 2021 peak. Despite revenue climbing more than 70% from 2021 to 2024 and improved profitability, the enterprise software sector has struggled to sustain growth after the Covid-era surge, as companies cut back on upgrades once offices reopened in a weaker economy.
Also Read: Dayforce: Native Platform To Drive Deal Growth, Says Bullish Analyst
The company reported second-quarter adjusted earnings of 61 cents, beating the consensus of 52 cents. Sales reached $464.7 million, beating the consensus of $457.71 million.
Dayforce expects third-quarter sales of $476 million-$486 million versus the consensus of $483.13 million.
The company revised its fiscal 2025 sales guidance from $1.93 billion to $1.94 billion, compared to the consensus of $1.94 billion.
Price Action: DAY stock is up 8.66% at $57.46 during the premarket session at the last check on Monday.
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